It was a cheaper monthly mortgage to go with the BBT CHIP program than with the FHA loan. So that is why I chose it. With FHA they wanted an extra 148 dollars a month for the PMI. Now, the PMI does go away once you have 22% equity in the home, but you have to pay the PMI for a minimum of 5 years.
FHA loan is more out of pocket cost than the BBT CHIP. On 152,000 i would have had to come up with 3% down = $4,560 for downpayment, $1,000 deposit to realtor, $450 for appraisal, and $320 for inspection with a sum of $6,330 for FHA.
With BBT CHIP I paid 0% down, $1,000 deposit to realtor, $450 for appraisal, and $320 for inspection with a sum of $1,770.
My Good Faith Estimate on the closing cost would bring me to a credit of $330, so the 3% from the seller plus my $1,000 deposit will cover the closing cost unless there are extra fee's that have not been presented to me.
The CHIP loan program will finance anywhere from 97%-100% for the home. 97% if the home is in a declining market area and 100% if the home is in a stable market area.
I applied for the BBT Chip loan on March 4th, and the required documents were: Homebuyers education (which is free on the VHDA website), my last 2 paystubs, and my 2012 W-2 information, and a written letter from my parents that I do not pay rent. I bank with BBT so they have access to my bank account information, and of course your SSN for credit look up.
Just my two cents on my housing situation. I graduated college 6 months ago, and had a steady job all through college and picked up another job after college in what I went to school to do. I was worried about the housing market and having money for a down payment and such after school, and with the BBT Chip loan, I have only had minor stress headaches instead of migraines. Good choice for families without a lot of money to put down on a house or for first time home buyers like myself.
So therefore, if I was looking to purchase a home today, I would go with the CHIP program.
Noel A Shepherd