Today there are many different loan options available on the market.  One of the most widely known loan programs is the FHA home loan.  This program is available throughout the United States with no area or income restrictions and becomes an immediate secondary attraction to those looking outside of USDA eligible areas or for those borrowers that exceed the income limitations associated with USDA home loans.  The reason many people are intrigued by the FHA loan as a backup to USDA is the low down payment requirement of 3.5%, however, what many do not realize is that FHA loans come with a hefty private mortgage insurance tacked on to their monthly payment.  This mortgage insurance has also recently become necessary for the life of the loan term.  We have an alternative loan program that requires a much lower rate of mortgage insurance and in some cases there may be no mortgage insurance paid by the borrower at all.  The program is a conventional loan program, which is not widely available at local lending institutions, with a down payment as little as 3%.  The greatest benefit of this program to the borrower is that we are able to get them into a home with a very low down payment without the excessive mortgage insurance that comes along with an FHA loan.  This should reduce their overall monthly payment saving them money over the life of the loan and on top of that when they have enough equity in the property they should be able to have the mortgage insurance lifted reducing their monthly payment even further.