Many people don't realize that they can purchase a home with only 3% down and that does not have to come out of the borrowers pocket as the down payment can be a gift from a family member or a grant program. Also with the conventional loan process the buyer does not need to have mortgage insurance. With the no mortgage insurance option this allows the homebuyer to purchase more of a home at a higher purchase price.
The Federal Housing Administration FHA allows borrowers to do a purchase with 3.5% down payment and the down can be a gift or a 1st time buyer program for the down, but FHA still requires mortgage insurance on the home regardless of the amount of the down payment. FHA has steadily raised the monthly mortgage insurance premiums over the past several years. While this was the best option or program due to lower insurance premiums this is no longer the case. for more information call 626 483-0201
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