Any lender will tell you: There are no shortcuts to homeownership. If you want to buy a house, you'll have to spend some cash.

But banks, nonprofit housing groups and local, state and federal governments are so eager to help income-earning people become homeowners right now that they've developed scores of buying programs that give almost anyone with less than $5,000 in cash a chance to buy a house of his or her own.

Some lenders and housing groups gear their programs only to people with incomes at or below Baltimore's median income level of about $48,000. Other groups help buyers of all income levels.

Compromise may be necessary. You might have to accept gift money from a relative and have them remind you of it for the rest of your life; pay higher monthly mortgage payments or more in interest over the life of your loan; sweat a little over physical labor; swear to stay put for 10 or 15 years in the same house.

Here are 25 ways to buy a house with less than $5,000 in cash:

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1. State CDA loans:

Several times each year, the Maryland Department of Housing and Community Development issues millions of dollars to banks and mortgage companies that allow buyers to finance 100 percent of the purchase price of a house. The last Community Development Association loan funds, issued in April, were limited to houses valued at or below $110,000.

April's CDA loans were available at a fixed 6.75 percent interest to families who make less than about $48,000 a year. Lower interest rates were available for individuals who make less than $30,200.

The state requires buyers with a CDA loan to put down a percentage of their income as a cash contribution that goes toward closing costs. People with incomes at the median level of about $48,000 must produce 9 percent or about $4,320 in cash.

But that money doesn't have to be their own. A family member can give all or a part of it to the buyer as a gift. Once the minimum cash contribution has been paid, the buyer can negotiate with the seller to pay the rest of closing costs.

Lenders say CDA loans are hard to beat. "It's the best and most well-known loan product for people with little cash in hand," said Mark Warns, a loan officer with Maryland National Mortgage Corp. in Lutherville.

The rub: CDA loan funds are released only a few times each year and are snatched up almost immediately. The last bond fund of $61 million was gone in a week.

CDA will issue bonds three more times this year. Lenders are already taking advance loan applications.

Information: 800-638-7781.

2. Community Home Buyer's Program

Most lenders participate in this loan program, backed by Fannie Mae (the Federal National Mortgage Association). The loans are targeted at homebuyers whose income is not more than the median level for their area. Income limits vary by county. Buyers must produce at least a 5 percent cash down payment.

But under a new type of Community Home Buyer's loan called a "3-2 Buydown," homebuyers may need to produce just 3 percent of their own funds for the down payment. The additional 2 percent may come from seller contributions, lender contributions, gifts from relatives, or a loan or grant from a church, nonprofit group or government agency.

Community Home Buyer's loans differ from CDA loans in that lenders require proof that the buyer's 3 percent contribution is from their own funds and is not a gift or loan from friends or relatives.

3. FHA financing

Loans backed by Federal Housing Administration (FHA) funds usually require somewhat less income and less cash down than conventional loans.

"The standard FHA program requires under a 3 percent investment, then closing and prepaid" costs, said John Moran, chief of the Housing and Urban Development (HUD) mortgage credit office in Baltimore. "Prepaids" may include points, taxes and insurance.

"For a $50,000 house, estimating 6 to 7 percent in the city for

closing costs, the total investment could still be less than $5,000," Mr. Moran said.

The percentage down payment required goes up with the value of the house, he said. A $100,000 home might require 6 percent down. The FHA loan amount is limited to about $152,000.

Information: HUD's Baltimore office, 962-2924.

4. VA financing

American veterans with an honorable discharge may qualify for loans backed by the Department of Veterans Affairs. VA loans require no down payment at all. Cash needed at closing could just fees and prepaid expenses. The maximum loan value is $184,000.

Information: 685-5454.

5. FHA/VA rate reduction loan

Some lenders often offer preferred interest rates or point breaks to low- or moderate-income homebuyers. A point is prepaid interest charged by the lender at closing. One point equals about 1 percent of the loan amount.

First National Mortgage Corp.'s Rate Reduction Program, for instance, discounts points to the buyer by one-half percent and gives another half-percent break on the FHA market rate of interest. That can save a buyer several hundred dollars in cash at settlement time.

Loan limits vary. First National sets its maximum at $70,000. The maximum family income level for the Rate Reduction program is $30,200.

Information: First National Mortgage Corp., 832-7980.

6. Premium pricing loans

These loans are geared especially to buyers who have good incomes but are short on cash for a down payment. The lender contributes money toward closing costs in return for a higher interest rate.

"If your loan is at 8 percent with a total of 3 points, you can go up to 9.5 percent and get up to 3 percent of closing costs contributed by the lender," said Rose Jackson, a loan officer with Independence One Mortgage Corp. in Lutherville.

Buyers who qualify for premium pricing loans typically must have a payment that won't be more than 29 percent of their gross income, and a monthly debt plus monthly mortgage that won't be more than 41 percent of gross monthly income. That's known as a 29/41 ratio.

Information: Independence One Mortgage Corp., 339-5850.

7. Pay no points

"The best way to purchase a loan is to pay no closing costs and no points," said Donald Ordakowski Jr., president of Baltimore American Mortgage in Hanover. "We eliminate points, and you ask the seller to pick up the transfer tax and documentation stamps," so all the buyer needs is a cash down payment.

Some sellers who want to sell quickly may agree to pay expenses and all the points, which are typically shared by sellers and buyers. That could save the buyer $3,000 or $4,000 or more in cash on a mid-priced home.

Companies like Baltimore American can eliminate the buyer's share of prepaid costs at closing because they require buyers to use the company's own title company. They also charge a higher interest rate on loans. On FHA loans, they demand a bigger down payment.

Information: Baltimore American Mortgage Corp., 859-4100.

8. HUD 100% financing

HUD-backed 100 percent financing isn't a sure thing yet, but it is being considered in Congress.

"What we know about it is if you are a first-time homebuyer or haven't owned a house in the last three years, you could buy 100 percent of the acquisition and repair costs of a house, then pay the prepaid and closing costs," HUD's Mr. Moran said.

9. Conventional financing

Even if you don't qualify for any other types of assistance, conventional financing still requires just about 5 percent of a down payment. Of 95 banks and savings institutions that offer 30-year, fixed-rate mortgage loans in Maryland, 43 of them require just 5 percent down.

10. Home-sharing

Buying a house with an unrelated individual, each putting up a share of the cash and responsibility for ownership, isn't a common practice. But if two unrelated people can convince the lender they'll both be occupying the property, they may qualify for a loan with half the resources they'd need on their own.

11. Take-back financing

Rather than have a buyer obtain their own financing, a seller may allow the buyer to make payments directly to them. "That's real attractive and completely negotiable," said Tracy Durkin, executive director of the Belair-Edison Housing Service, a housing counseling group. "The seller could say I want zero down, or 10 percent down."

The downside: "I never see it happen. Maybe once," Ms. Durkin said. "A lot of people don't want to take that risk."

12. Nonprofit homeownership group loans

Counseling groups in the city and counties occasionally have funds to loan low- and moderate-income people who want to buy homes in their neighborhoods. Neighborhood Housing Services (NHS), a nonprofit housing group, makes mortgage loans up to $40,000 from a revolving loan pool. It also arranges tandem mortgages to help buyers bridge the difference between what one lender will give them and what they need to move into a house.

NHS covers the neighborhoods of Irvington and Coppin Heights. Loans are typically reserved for people who make about $38,000 or less a year.

Information: Maryland Low Income Housing Information Service, 727-4200.

13. Baltimore Settlement Expense Loan Program (SELP)

If you live in the city, you may qualify for a settlement expense loan that gives families up to $5,000 each to cover closing costs. SELP loans are offered by the Baltimore Department of Housing at 9 percent interest for houses valued between $60,000 and $151,725. There are no income limits.

Since the city launched the program in 1993, it has issued $2.8 million in 650 loans. "It's a great idea that has helped many people who never would have owned a home," said HUD's Mr. Moran.

Information: Baltimore Housing and Community Development, 396-3124.

14. Maryland Settlement Expense Loans

Other jurisdictions have or are planning settlement expense programs of their own. Maryland's Community Development Association reactivated a settlement loan program in April.

The state gears its program toward low-income residents with individual income limits of $30,200. The interest rate on its loans of up to $5,000 is 5 percent with a 10-year loan term. Almost 60 lenders around the state participate in the Maryland settlement expense program.

Information: Maryland Community Development Association, 800-638-7781.

15. Nonprofit Closing Cost Program

Neighborhood Housing Services, the nonprofit housing group in the city, also has a closing cost program. NHS' closing cost loans are similar to Baltimore's SELP loans, but they are issued only to residents in ZIP codes 21216, 21219 and parts of the Patterson Park area.

Loans up to $5,000 are issued at 5 percent interest with a 10-year term.

Information: NHS, 327-1200.

16. Soft seconds and grants

Secondary financing helps buyers pay for settlement expenses and the cost to renovate homes in disadvantaged neighborhoods. Various private lenders and some nonprofit groups issue second mortgages.

Some secondary mortgages are called "soft seconds" because some or all of the money may not have to be repaid. Ruth Crystal, executive director of the Maryland Low Income Housing Coalition, said soft seconds are appearing in cities or counties that want to foster homeownership.

"They are structured so you don't have to pay the second monthly and the amount you owe reduces monthly," Ms. Crystal said. "If you stay in the house for 10 years, you don't owe anything."

Until the federal funds ran out in April, Baltimore provided affordability grants to people who used the Community Home Buyer's Program and needed help finding the 2 percent portion of the down payment.

Information: Maryland Low Income Housing Information Service, 727-4200.

17. Lease with option to buy, lease-purchase

A lease-purchase gives buyers time to put aside enough money for a down payment. The buyer actually rents the house for a specified length of time from the seller, who cannot be in a hurry to move.

The downside: Lease options may cost more in the long run than buying a house through another affordability program.

"Unsophisticated people may think they own their own homes, when all they're doing is renting," said Rahn V. Barnes, vice president and manager of community lending with Provident Bank of Maryland. "It's an alternative when nothing else works."

But Ms. Crystal of the Low Income Housing Coalition said many nonprofits are orchestrating lease-purchase deals for low- and moderate-income buyers. She says they especially help people who need time to straighten out their credit.

18. HUD repo

Buyers can often find good deals requiring low cash down with HUD properties. HUD's Mr. Moran said homes in its inventory have been foreclosed upon or assigned to HUD for other reasons.

The sale price and loan package, he said, "are negotiated pretty much one on one," by the lender and the buyer. "There are incentives built in that HUD offers so a buyer could require a very little cash investment. Somebody looking to maximize their purchase could get a good deal.

"Homes range from those in excellent shape to ones that have been gutted and vandalized," Mr. Moran said. "But you can borrow the cost of repairs," from HUD or qualify for a government-sponsored affordability grant.

A list of HUD homes is published each week in newspapers' real estate classified ad sections. To get a HUD home, buyers contact the agent representing the property, who contacts HUD and coordinates financing with a participating lender.

"We've really been successful with HUD repos," said Ms. Jackson of Independence One Mortgage. "We've seen people get into homes with as little as $2,000 or $3,000. They can add so much back into the mortgage. And HUD contributes a repair escrow."

Information: HUD, 962-2924.

19. Rehabbed properties

Area developers Bacon & Co. and Struever Bros., Eccles & Rouse Inc. are jointly developing and rehabilitating several residential projects for low- to moderate-income homebuyers. Their projects allow buyers to get in with very little cash up front.

The developers have rehabbed more than 50 homes in South Baltimore's Westport community.

Ted Rouse of Struever Bros. said the homes can be purchased with a first mortgage as low as $43,000. Developer and city subsidies add as much as a $30,000 second mortgage that covers the cost to renovate the house.

"With the Settlement Expense Loan Program," added to the deal, Mr. Rouse said, "you can actually get the total cash required down as low as $1,000."

20. Other builder incentives

Wendy Rubin, development director with Struever Bros., said buyers get several incentives if they buy one of the builder's new homes at its Harris Hill development in Towson.

"For every buyer we kick in up to $2,500 toward settlement costs for transfer taxes and one-half the points," Ms. Rubin said. "Most buyers, by the time they come to settlement, may need to have with them $500 to $600."

21. Sweat equity

Buyers at Struever Bros.' Harris Hill also have the chance to build "sweat equity" into their homes and knock hundreds of dollars off their closing costs. Buyers can complete some of the painting and cleaning of their new homes and earn a $1,275 credit at closing.

22. Builder buy-down

Some new-home builders may agree to pay part of the buyer's share of points to reduce their cash requirement at closing. But because interest rates are still low, most builders have shelved buy-down programs for buyers.

"You are seeing builders paying various amounts to closing costs, but not like in past years, when interest rates were historically high," said Clark Turner, president of the Home Builders Association of Maryland and a Harford County developer.

23. Semiannual property tax payments

First-time homebuyers in the city of Baltimore and Harford County now may pay just eight months of their property taxes at settlement, rather than the full 14 months formerly required.

Property tax prepayments are a big part of the cash buyers have to put down before they can move in. Splitting the tax payment in two could reduce a buyer's settlement costs for a $100,000 house in the city by $1,200. Harford County's property taxes are about half the Baltimore rate; buyers of a $100,000 home there could save $600 on settlement day.

The Baltimore City Council passed the law earlier this year. It goes into effect immediately for first-time buyers and Jan. 1, 1995, for all buyers. Harford County's semiannual property tax law goes into effect for first-time buyers only July 1.

24. Vacant house property tax credit

People who buy vacant houses in Baltimore and restore them are eligible for a city tax credit equal to 100 percent of the increased value of the property due to its renovation. If the assessment of the house goes up $2,500 after the new owner has renovated it, the owner gets a $2,500 property tax credit the first year.

Buyers also get reduced tax credits for the next four years, as long as they continue to own and occupy the house.

Owners must apply for the tax credit with Baltimore's director of finance. They must also have a property assessment done on the property before and after renovation to show the increased value of the property due to improvements made.

25. Combined programs

Many cash-strapped homebuyers use several affordability programs at once.

"You can take a VA loan with 100 percent financing, combine it with SELP that allows you to borrow up to $5,000. After seller concessions, the amount of cash you need at settlement could amount to a few hundred dollars," said Barbara Schmitt, vice president of First National Mortgage Corp. in Baltimore.