You've all heard the stories -- finding that gem of a foreclosure way below market price that only needs a new furnace and some cosmetic updates, bought by a savvy investor or lucky owner-occupant. Have you been hoping to find the $40,000 property in a $100,000 neighborhood that only needs a new roof, not a new foundation? I'm here to tell you that the likelihood of that happening anymore is very, very small. Infinitesimal. The homes I've been showing in Hamilton, Clermont and Brown counties that are in this price range are not worth fixing up -- you will never ever get your money back. Sounds harsh even to me, but there you have it. That's the bad news.

The good news is this: if you have an income that has been nice and steady for the past two years, average credit, and the will to commit to home ownership, qualifying for a mortgage is probably MUCH easier than you think. Plus, there are plenty of low down payment mortgage options for you to choose from: FHA with 3.5% down and recently lowered mortgage insurance premiums, USDA in many rural areas with 0% down payment, VA loans for veterans of the military with no mortgage insurance premium, the new Freddie Mac Home Possible Advantage with 3% down -- many lenders are even offering 5% down conventional loans.

Will you end up paying more for a house if you make a smaller down payment? Yes, probably. Unless you make extra payments and pay down the principal balance over time. But it still beats renting, and as long as you take good care of your home chances are you will see a return on your investment.