The following table compares the three most popular programs for homebuyers with good credit and the ability to document their income, but minimal savings for a down payment.
|Minimum Down Payment||0%||3%||3.5%|
|Upfront Mortgage Insurance *||2.15%
2.4% (Reserves/Nat'l Guard)
0% (Disabled in Service)
|Annual MI||0%||1.1% with 3% Down **
.62% with 5% Down **
|MI Cancellation Based on Original Appraisal||N/A||Cancellable when loan balance paid down to 80%. No minimum term requirement.||Not Cancellable|
|MI Cancellation Based on New Appraisal||N/A||Cancellable when: (1) at least 2 years have passed and loan-to-value is 75% or less; or (2) at least 5 years have passed and loan-to-value is 80% or less.||Not Cancellable|
|Minimum FICO Score
|Max Seller Credit||Total Closing Costs||3% of Purchase Price||6% of Purchase Price|
|Other Restrictions||Must be an active duty military, reservist or national guard, or veteran, or current or surviving spouse.||3% down only available to borrowers who have not owned a home in the past 3 years. 5% down available to all borrowers.|
- *Upfront Mortgage Insurance on VA and FHA loans may be financed by adding to loan amount.
- **Annual MI on Fannie Mae loans based on FICO score. Rates shown assume 720 FICO score.