There is a first time home buyers loan which is known as a FHA loan. For people who are buying a home for the first time this is the best loan. The down payment is only 3.5% .And a very big plus is that a person can have a credit statement which shows a ratio of very high debt against their income and it will not affect their eligibility.In addition to the low down payment the monthly payments for insurance on these loans are also lower since the FHA will charge a buyer a percentage on a monthly basis. This is also what is called MIP funding fee.