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Mortgage down payment help?

After many years, a house that my wife and I love has finally come up for sale. It is a HUD foreclosure, and it is $16,000 cheaper than it was the first tie it was for sale. My local bank will finance all but $1,300. My problem is that while the monthly payments will be around $100 cheaper than my current rent, I have no savings. My total cash payout at closing would be about $4,500, all of which I don't have. I read that the government no longer allows "charitable" help with down payment/Closing costs. Does anyone know of any other sources for help?

Public Comments

1. Unless you are a veteran, you need to come up with down payment/closing costs on your own. The bank will also ask you for 6 mos to a year of bank statements to verify that you didn't just have someone drop $ in your account to appear as if you have savings, you actually have to have money if you want a house these days. Start saving.
2. yard sale sell your vehicles for money and drive less expensive ones? offer $15,000 less
3. Here's an idea. If you are a first-time home buyer (you can read the details of this on the web). You could borrow the money from a family member, the bank has a gift statement they would have to sign. They would have to say it is a gift. But then you can file your 2008 taxes and get $8000 back if you buy the house before Dec. 1 2009. You can then pay back your family member and have some left over as cushion. I also know that although you love this house their is a lot that can go wrong with a house and you need to have some savings in your pocket for those Murphy times.
4. Last October 1, 2008, ALL these programs ended. FHA will require 3.5% of YOUR OWN MONEY. Try a USDA loan, which is 0% down. Then ask the seller to pay your closing costs.
5. Your parents can "gift" you the down payment on an FHA loan. You will have to get the seller to pay for your closing costs. Part of owning your own home is making sure that you have the extra $4,000 when your air conditioner breaks and must be replaced. If you are sure you can get to that level, buy the house..