This BankRate article lists the different ways to buy a home without down payment:
- VA loans
- Owner financing
- House trading
- Job-related federal programs
- State and local government programs
Of course, for no-money-down purchase, one runs the risk of being upside-down, but as I noted earlier, it should not be a concern because house and mortgage are separate decision. What one should worry, especially if he buys the house for investment (or speculation), is whether he is paying a fair price for the property.