The sub-prime loan which helped fuel the ability to buy a home in the boom of the real estate market in 2001 to 2004 has disappeared from the scene. Homebuyers in Southern California still have many options to purchase a home with no down payment. For the veteran buyer VA programs offer a 30 year fixed loan with zero down payment that is backed by the federal government, and will even allow for structuring 4% of the purchase price to be paid off in consumer debt. Additionally for a veteran buyer looking for a great interest-rate the Cal-Vet program offers a 5.45% 30 year loan up to the conforming loan limits of 417,000. For veteran buyers who are looking for a larger home in a more expensive price range up to $521,250 the Cal-Vet program has the answer with a program that has a rate of 6.55% for a 30 year loan.

Even if you are not a veteran or an active military member, the state of California offers through their CalHFA program 100% financing under a conventional loan up to $543,859 with their first time home buyer program. As with any first-time home buyer program there are limitations on income. If you have less than stellar credit the FHA loan combined with CalHFA will allow you to purchase with the 0% down payment by using the silent second program CHDAP for the 3% down payment product. If you don't meet the guidelines for these programs there is still FNMAs line at 100% financed loan programs. They offer both the Flex-100 and My Community programs both with liberal underwriting guidelines.

With the falling prices in San Diego's real estate market, and in some cases bank owned properties selling at 30% below the peak of the market price, consumers have a window of opportunity to buy a home with a low interest-rate and 100 percent financing readily available. Mortgage default rates dropped 31% in the month of November in San Diego County signaling the start of a reversal in the default rates. Combine this with President Bush's new plan to freeze the adjustable mortgages for a five year term, and this window of opportunity will be changing quickly. The wise consumer is now taking advantage of these three conditions rather than waiting for the news of a turnaround in the markets to purchase and missing the bottom.