I would suggest that you contact a local mortgage banker/broker. My corporate office is located in California if you'd like a few names emailed to you from me. I happened to come across your post and thought I'd send a quick note. If you go conventional and have enough funds from the CHDAP program for a down payment large enough to qualify without private mortgage insurance, that would be the way to go. If it's not enough and you'd still have to pay mortgage insurance, I'd bet it's a tight race between the two programs. FHA, you'll have upfront mortgage insurance (added to the top of the loan amount) PLUS you'd have to pay monthly mortgage insurance. Both of those (going conventional) would be less than the mortgage insurance you'd have to pay going FHA. However, the rates for FHA would be better than a conventional loan above 80% loan to value. PLUS with the down payment assistance program, they usually put stipulations on the money they'll give you. For example, a $10k gift is done with a forgivable grant/lien against the property. Then so long as you live in the home for 5 years you won't have to pay these funds back. You'll want to get and keep all the documentation you receive so that you can be sure after the 5 year mark you can get that lien removed. I'm not sure if I'e covered all of your concerns. Again, I can provide you names if you'd like to get a second opinion (from someone licensed in your State) as I'm only licensed in the State of Ohio at the moment. Best wishes to you in your purchase! I hope I've been somewhat helpful. Regards, Best to you, Kimberly Lawson Mortgage Loan Originator First Priority Financial, Inc.
"Where Open Minds Close More Home Loans" 748 N. Court Street, Suite 201 Medina, OH 44256
Phone/Fax: 888-659-3848 Licensed by Ohio Division of Financial Institutions, MB.850147.001
Ohio Loan Officer License: LO.4495.000 NMLS: 5601