5% Down-No Mortgage Insurance Conventional
If you do not fall into either of those categories, one of the best mortgages out there is this program. It features a slightly higher down payment and credit score than FHA and an interest rate approximately 3/4% higher than FHA loans but this is more than offset by the lack of mortgage insurance which is very significant versus an FHA mortgage. Taking into account the higher rate and down payment, borrowers still end up with a much lower payment amount versus an FHA. Since FHA mortgage insurance remains for the life of the loan, this is generally the best option for most mainstream borrowers.