(MONEY Magazine) – What's the fastest-growing group of first-time home buyers? The under-25 set. Since 1992 the number of homeowners under age 25 has nearly doubled, to almost 1.5 million in 2002, according to the U.S. Census. "The rising tide is low interest rates," Says a National Association of Realtors spokesman. The introduction of 3%-down and no-money-down home loans helped too. (See the graphic.)

Whatever their age, first-time buyers now have plenty of options: Fannie Mae Flex mortgages let them borrow as much as $322,700 with an option of 3% or no money down (800-732-6643). Some loans cover a down payment and some of the closing costs: Qualified buyers can finance 100% of the purchase price (to $325,000) plus up to 3% of the closing costs with Wells Fargo's No Money Down Plus loan (800-288-3212). Two caveats: Rates for low-down-payment loans are typically 0.5 to 1.25 percentage points above average. More important, you're literally borrowing more than the value of your home--a risky move if prices fall and you have to sell. --FARNOOSH TORABI