rural development loan have income restrictions, and unlike bond money, it hasnt run out

usually a middle class 2 income couple will make too much to qualify

Rural Development loans (RD loans) are dictated by the local rural development office. You might want to contact them directly and ask if funds are still available for your area. http://www.rurdev.usda.gov/la/offices.htm

Otherwise, the only way of avoiding PMI at this time is to secure a VA loan -- which is only available to military personnel.

I know common rule of thumb is to try and avoid PMI - but as of 2007 it became tax deductible (just like home loan interest) and can often help out during income tax time.

I am closing one this week, my mortgage company still has them.
realtorcraig@cox.net