Fannie Mae's Community Home Buyers program has an income cap of 120 percent of the area's median income. In addition, the borrower must attend a seminar on home ownership and the home buying process.

It is not geared only for first-time home buyers, unlike many of the other low-down -payment programs on the market.

This loan program allows for 97 percent financing. The borrower may put down as little as 3 percent of his or her own money, with the remaining 2 percent coming in the form of a family gift or loan from a government or nonprofit agency.

The program is administered through participating lenders. There are income limits in different states. However, the income restriction is waived when borrowers participate in the Fannie Neighbors program. Fannie Neighbors also has lower income requirements for borrowers who want to buy in designated central cities.

People who are borrowing in either of these programs must attend a seminar on home ownership and the home buying process.

This mortgage plan was created to increase homeownership and promote revitalization in central cities as well as minority low and moderate income areas. Borrowers need less income to qualify for a mortgage and less cash for closing than with standard mortgages. The program includes mortgages to buy or refinance a home.

Two new programs will help potential buyers overcome two of the most common obstacles to home ownership, low savings and a modest income.

To address many first-time buyers' struggles to save the down payment, Fannie Mae developed Fannie 97. The program provides 97 percent financing on a fixed-rate mortgage with either a 25- or 30-year loan term through Fannie Mae's Community Home Buyers Program.

Fannie Mae's new Start-Up Mortgage will assist buyers with a 5 percent down payment who are at any income level. Yet applicants do not need as much income to qualify and less cash for closing than with traditional mortgages. Borrowers will receive a 30-year, fixed-rate mortgage with a first-year monthly payment that is lower than the standard fixed-rate loan.