Some are guaranteed

others are privately funded through Fannie Mae

and require the borrower to meet certain low to

moderate-income guidelines. Other loans don't

have any income restrictions.

And if you're

worried about the monthly payment, don't forget

to factor in the tax savings. Three major items

are deductible from your federal income taxes:

mortgage loan interest, including any late fees;

purchase points, also known as loan origination

fees; and, property taxes. Just the mortgage

interest alone could slice several thousand

dollars off your taxable income.

Be creative in

finding money for the down payment. Let's say

you're getting married. American couples spend

$16,000 on the average wedding. How about taking

half of the budget and devoting that to the down

payment on a home?

Chances are you'll

still have a great wedding but you'll have your

own place to go to after the honeymoon.

Or on a more modest

scale, how about saving some money right now?

Start watching what you spend every month on

vacations, clothes, sporting equipment,

restaurant meals and other discretionary

expenses. Put yourself on a budget and sock away

some money every month.

Don't want the

hassle of yard work or cleaning the gutters?

Perhaps a townhouse or condominium is for you.

Apart from reducing your maintenance hassles, you

may find condos or townhouses more reasonably

priced than single-family, detached homes.

Chances are you'll find other people in your age

group living there, too.