For those wishing to buy a property, the Pre-Approval process is typically the first step.  This process will let you know what your price range is as well as any First Time Homebuyer Programs that might be available.  The current "shadow inventory" of Bank Owned Properties is continuing to dominate the market.  These institutional sellers tend to prefer Conventional Financing or All Cash.  However, FHA financing may be available for new construction or well maintained properties which do not have any health or saftey issues such as broken windows, peeling paint, mold, exposed wiring, or other deficiencies.

Conventional Loan

(Update 04/25/10)  I am now aware of two conventional loan programs allowing 5% down and 10% down.  Minimum requirements for credit score and debt to income ratios. Not all individuals may qualify.   Typically down payment, however, is still 20%.  2010 Fannie Mae loan limits in LA County are raised Temporarily to $729,750 for 1-unit and $934,200 for 2-unit dwellings since Los Angeles is considered a California High Cost Area.

Non-Convention "Jumbo" Loan
A jumbo loan is any residential or commercial loan exceeding the guidelines of Fannie Mae and Freddie Mac. 

FHA (Federal Housing Administration) Loan
With this type of loan, the down payment is much smaller at 3 1/2% and the loan is guaranteed by the FHA which is a US Government created entity.  However, the borrower is required to pay upfront mortgage insurance.  There is also a renovation loan program called 203(k) which provides money for repairs, upgrades, and appliances.

VA (Veterans Administration) Loan

A VA loan is a loan in the United States guaranteed by the Veterans Administration. This loan offers the benefit of a low down payment.  The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses.