That's actually a pretty high fraction -- is that local to you or in general?

Sorry to sound harsh, but...
Honestly, if you're a vet planning to put 0% down or an FHA buyer putting down 3%, not sure if you should be buying. It may be a good thing that future home-renters with no skin in the game are being locked out of the market. No skin in the game means that they're more of a risk for strategic default down the line.