For local programs you should contact your state and the city you wish to buy a home in. Many of the larger cities will provide lowinterest mortgages or down payment assistance if you are willing to buy a property in an urban development area. You may also be able to get some state funding for a development area that is outside of the major cities, but you will need to look hard for those programs.
The term urban development area usually means that the property is run down, could be in an area of high crime, and the government has now taken hold of the entire area in an effort to build it up. Experts say that areas in our major cities all go through a similar lifecycle. They are usually built by the wealthy with all the options of the day. After many years the property is sold to the middle class for a temporary period. The middle class moves on to a home with current amenities and sells to those less fortunate who may not be able to keep the property up. Eventually after several sales and a deterioration of the area the home sits in disrepair. The city then looks at the area, feels there is great potential, and puts up money for the rehabbers. Rehabbers come in fix up the property, adding the current amenities, and sell to the young urban professionals for an amount many times the original cost.
If you can be a rehabber you may be able to find a hidden jewel property that has unfortunately been mistreated and used for gang or other illegal activities. With the local financial assistance and lots of work you can turn this hidden jewel into quite a beautiful gem and be on the cutting edge of the next area that is undergoing an urban resurgence.