To buy a house with limited funds, prioritize saving for a down payment, explore government-backed loan programs, and leverage creative financing options. Focus on properties in lower-cost areas, consider fixer-flippers to reduce upfront costs, and negotiate seller concessions. Building credit and securing pre-approval are critical steps to enhance purchasing power.

First-time buyers often face challenges due to insufficient savings for down payments and closing costs. According to the U.S. Department of Housing and Urban Development (HUD), 63% of first-time homebuyers used a down payment assistance program in 2022, with FHA loans requiring just 3.5% down. Government programs like the USDA Rural Housing Loan and VA Home Loans offer zero or low-down payment options, respectively, expanding accessibility. Meanwhile, fixer-flippers typically sell for 10-20% less than move-in-ready homes, as noted by Zillow (2023), making them viable for budget-conscious buyers. Negotiating closing cost contributions or price reductions can save thousands. For example, Fannie Mae reports that 58% of buyers in 2023 secured seller concessions, averaging $8,000 per transaction. Additionally, improving credit scores from 600 to 700 can qualify buyers for lower mortgage rates, saving hundreds annually. These strategies collectively reduce financial barriers, enabling homeownership despite limited capital.