I see way too many press reports suggesting a 20% down payment is the norm for home financing. Actually, the average down payment is less than 10%, and it's possible to buy a home with no down payment at all. Let's look at the loan options and see how far we can stretch a small savings account.
The no down payment options are the VA and USDA Rural Development loans, but both are restricted programs. You must be a current service member or veteran to qualify for the VA program. The USDA program is available to anyone; however, it has income limits, and only homes outside urban centers are eligible.
Among loan programs without restrictions, the lowest down payment at 3% is a conventional loan. The minimum down payment for an FHA loan is 3.5%.
Your down payment is just part of the funds you need to bring to closing. You also need to account for closing costs and prepaid expenses, and we're going to cover those next time.