For years a FHA loan seemed to be the #1 loan choice for First Time Buyers BUT those days may be gone? Over the last few years the FHA mortgage insurance rates have increased several times and now can stay on the loan for the entire 30 years,regardless of the equity accumulated. FHA charges an 1.750% up front mortgage insurance cost added to and financed in with the loan after the required 3.50% down payment, but then a monthly mortgage insurance premium of 135 basis points is added monthly.So, on a $100000 loan this would be $1350/yr. or $112.50 per month. Yes, the FHA rates are less than on a Conventional loan, but this benefit is often offset due to these high monthly mortgage insurance costs. Conventional loans typically require 5% down but the mortgage insurance can be much less than with FHA, and can drop off once 20% equity is achieved. USDA loans are another possibility offering low rates, and do not require a down payment or mortgage insurance, although there is a smaller monthly USDA fee. For USDA, the home must be in the County and the total household income must be under the limits for the County. For your loan options call us at DIVERSIFIED MORTGAGE BROKERS - Tel: 434-237-3143, Email: dbi4009@aol.com, Web: www.diversifiedmortbrokers.com . WE EDUCATE & DELIVER