This is typical. You need to understand the bank never came up with that $180k price in the first place and since it is a short sale you know they are owed more than $180k so the bank could, and did, ask for more. The listed price is "Dreamed Up" by the seller and their agent to attract an offer. Then they submit the offer to the bank to see what they say. This is why having a good agent helps, it can be frustrating for a buyer. You can make a counter offer of $220k and see if they accept it. Good luck.... more
By downpayment programs, I assume you mean downpayment assistance? If so, check out the Washington State Housing Finance Commission's pages on Home Ownership as well as Downpayment Assistance (link below).
However, work with a good lender/mortgage broker to see if using one of these programs makes sense for your situation--there may be strings attached to the various programs that may restrict what you can do in the future.... more
If you are putting 25% down I can only assume that your loan officer put you into an FHA product because of a low credit scores and/or high debt to income ratio. Generally, with that high of a down payment you would get a better rate going with a conventional loan without PMI. But FHA has easier qualifying standards and, yes, there is always the PMI.
If you are closing in a few days there is probably no way to change your financing without permission from the seller to extend the closing date. That is probably not likely considering it would take a couple of weeks to secure a different loan.... more