When interest rates are high using an FHA loan is often times the best way to go. You can use a 3% down payment and when rates go down you can do a Streamline FHA Refinance to lower rate without having to requalify for the loan. When interest rates go down property values rise so you may be able to refinance into a conventional with no mortgage insurance. Home sales are very slow in the vast majority of the country, so sellers are happy to contribute to the buyer's closing costs. Total out of pocket for the purchase can be below 5% in total.
When interest rates are high using an FHA loan is often times the best way to go. You can use a 3% down payment and when rates go down you can do a Streamline FHA Refinance to lower rate without having to requalify for the loan. When interest rates go down property values rise so you may be able to refinance into a conventional with no mortgage insurance. Home sales are very slow in the vast majority of the country, so sellers are happy to contribute to the buyer's closing costs. Total out of pocket for the purchase can be below 5% in total.