FHA loan vs. 80/10 vs. PMI

We are already preapproved for a 90% loan with PMI or an 80/10 loan at about 5.9% (obviously the second mortgage for the other 10% is higher than that).

The monthly payments on the 80/10 loan are lower than those for a 90% loan with PMI. We were leaning toward the 80/10 anyway.

I assume an FHA loan is an option (as our mortgage appears to be under their limit...), but this isn't something we really looked into.

Would there be a major benefit to an FHA loan over the other two options?

We have a high combined income, so the BOA program I've been reading about doesn't seem to apply to us...

Thoughts? Is it worth seeing if we can qualify for an FHA loan? Is the rate on an FHA loan usually higher?

ETA - Are FHA loans always adjustable rates? (We want fixed rate for sure!)

Message edited 3/29/2007 8:48:28 AM.

Re: FHA loan vs. 80/10 vs. PMI

I don't know much about this, but I do know that an FHA loan can be a bit of a hassle.
The government sends in inspectors to ensure the house is in good enough condition to sell. It can delay the selling process, and often will scare a seller away.

I hope this helps!

Re: FHA loan vs. 80/10 vs. PMI

Actually, when I looked at the numbers, we're better off with the 80/10. An FHA loan for us would wind up costing us more month-to-month -- and due to the cost of our home and the mortgage limit in NY, we'd still have to put down the same amount...

Oh well. Guess we have a pretty good deal afterall!