The Community Home Buyers Program (CHBP) is a special program available through the Federal National Mortgage Association (FNMA), or Fannie Mae, which is a federally chartered corporation that purchases conventional and government-guaranteed real estate loans; it is also the world's largest home loan investor.

With the FNMA program, you need to save only 3 percent, or $3000 on a $100,000 sales price. The rest of the money you need for closing can come from a gift from relatives or a nonprofit organization or some sort of state or local government program in the form of a grant. The program is designed for low- to moderate-income families. The program allows you to purchase more home because the qualifying ratios are eased.

This lower down payment conventional loan can compete with the most popular first-time homebuyer loan (FHA). The Federal Housing Administration (FHA) is a division of the Department of Housing and Urban Development (HUD) whose main activity is to insure residential real estate loans made by lenders. It sets standards for construction and underwriting. The FHA neither lends money nor plans or constructs houses.

The CHBP has one catch, however. You must take a special educational course on preparing for home ownership. This course will include such things as analyzing your current expenses, how to negotiate your contract, what to expect from the loan company, and life as a homeowner. It's a very useful course, and everyone should enroll in it. Call your lender for further details.