Down Payment?

My boyfriend and I are looking for a first house together. I was searching yahoo real estate today and found this adorable and wonderfully redone little house that would be perfect for us. It is being sold by the owner and she says she won't go any lower. The house is being sold at 69,000 with a down payment of 13,800. Can the down payment come out of your loan or is that all out of pocket? What is a down payment generally for? Is there any way to still get the home if that money has to come out of pocket and we don't have 14 grand prepared? Please help me answer these question. They have put a lot of work into this house and so far I just adore it and Im really tired of being cramped in an apartment. Besides how are we supposed to save when we are throwing money away on an apartment every month. It's time to invest.