I am not sure about the rules write 'now' cause they have been getting 'stricker' again with the economy the way it is ~ but when we bought our house in 2007 first time homeowners did not need a down payment ~ we actually had 'saved' the down payment and when offered the option chose the zero down because it only made a minimal difference in our mortgage payment however the 5% we had saved up thinking we needed it allowed for wiggle room in the moving expenses and pressure on not depleting our 'savings' to get into the house sooner!