If your daughter is looking to buy a house I would suggest, if time allows, that she try for a HUD foreclosure. This is what we got for our daughter a few months ago. If she is not afraid to do some repair work that alone should give enough equity to cover the normal downpayment. We went way overboard on my daughters repairs and only spent $10K to increase her equity by at least $20K on her $80,000 house. If she can't or doesn't want to spend time repairing I would suggest buying a house for sale by owner to save the commission costs.