Consider lender-paid PMI programs. Terms will vary from lender-to-lender. Rates will typically be higher that a conventional loan.

Hi Ksenia,

I deal with alot of FHA buyers. FHA will have mortgage insurance. In fact any loan that does not have 20% down will have mortgage insurance. Conventional mortgages allow you to get a 3% seller assist while FHA allows 6%. Also the amount of money that has to be yours in the deal is 3.5% and although the interest rates for FHA can be a bit more than conventional they are not too much higher. It's a good option for those that do not have alot of money to put down on a home and for those that have a few credit glitches as the underwriting for FHA is not as strict as conventional. Hope this helps.

Jennifer Daywalt, Realtor
Re/Max Results Realty
Top Agent 2004, 2005, 2006, 2007, 2008
610-999-7693 Direct
610-489-7355 Main Office
Sellinghomesjenn@aol.com

FHA actually is mortgage insurance, just not private mortgage insurance. The FHA-insured (lender is insured, nit you) program allows a downpayment as low as 3.5% of the purchase price, and comes with very good interest rates and flexible underwriting guidelines. The interest rate you pay is oftentimes lower than a com,parable conventional mortgage rate. If you are buying your first home, it is definitely an option you need to consider. Most real estate agents want you to be pre-approved by a lender first.

An FHA loan is gong to allow you to purchase a home with as little as 3 % down. This loan is guaranteed by the gov't. so banks are not as reluctant to make this type of loan.
The catch is you will pay a higher interest rate.
There are other programs available to people that do not have the 20% down. Your best bet isto talk with a local realtor and he/she can help you find out what type of loan you can qualify for at this time.
A good loacl realtor in your area is a man by the name of Gary Mercer. If you would like me to arrange for him to contact you send me an email at "mjr@ocnj.com"
Good luck you your house hunting
Mike Rayno, Realtor
Prudential Fox & Roach