Should you opt for a conventional loan and want to put the whole 18% down you may want to consider a smaller down payment and making a lump sum or "one time" mortgage insurance fee that would be paid at closing thus eliminating the monthly fee. Good Luck, I would be happy to help you out.
Licensed Loan Originator
Amerifirst Financial, Inc.
You are stating that you are putting 18% down payment. Conventional financing and VA both have a small mortgage insurance expense. The MI is greatly reduced because of the large down payment, Mortgage insurance is also tax deductible. I would not be concerned about this. I would be able to compare the various programs for you if you contact me,
Your mortgage broker will be able to show you the best options for your particular financial circumstances. There are conventional loan programs where you can pay points (a point is 1% of the loan amount) and the private mortgage insurance (PMI) is waived. You would have to stay in the house 5 - 7 years to break even on this deal UNLESS you get the seller to pay your points. Then it's a no-cost way for you to avoid the PMI. The seller can contribute up to 3% of the sale price to your closing costs on a conventional loan.
But VA may be a better way to go because of the 0% down payment. I always prefer to make the minimum down payment and keep my cash for investing or emergencies.
Honestly, all these questions really should be answered by a lender, I prefer a local lender like Nova Home Loans. I refer business to Paul Volpe, Vice Pres of Nova Home Loan (241-4048). You can give him a call for a conversation, what to expect, which loan is best for you, mortage calculator, and get pre-approved. None of it cost you anything nor is there any obligation. In fact, I suggest to all home buyers, getting pre-approved should be your first step in today's market.
Best of luck.
Please consult a mortgage broker. I heard there are programs wherein you need only to put 10 percent down without paying PMI.
My information is first hand from a local broker here in CT. Therefore it is advisable to get other mortgage broker's opinion.
Best of Luck.