McCue Mortgage Minute - Should You Save for a Downpayment?

Did you know that you do not need any money in order to buy a home?  
Of course, it’s good to have save up a little money for one of the largest purchases you will probably make, but here are programs available for first-time homebuyers to help you with the down payment and closing costs. 

DAP (Downpayment Assistance Program) This program allows you to take the required downpayment and all of the closing costs and roll them all into a mini 2nd mortgage that you will pay off over 30 years at the same interest rate as your main mortgage.  This usually adds about $40 to your payment, but allows you to avoid having to save up for that downpayment upfront.  There is no penalty for paying either of these off early. 

USDA (Rural Development) This program does not require any downpayment at all.  You can also negotiate to have the seller pay for most, if not all of your closing costs, meaning you only have to pay for the appraisal.  In New London County, the total household income has to be under $99,200 and the property cannot be in New London, Groton, Pawcatuck or Norwich though. 

VA (Veterans) This program also does not require a downpayment either and you can have the seller pay your closing costs as well.  For this program, you must have served in any of the armed forces though. 

Once again, it is always good to have saved some money for your inspection, appraisal, and just for your peace of mind, but these programs are some ways around it, if needed.  What do you believe it better in this economy?  Saving of financing your downpayment?  I’d love to hear your reasons why.