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[quote=Anonymous]An FHA is really your only option, but the person who told you to fear FHA loans was probably saying that based on very out of date advice. Their only major downside is you need to pay PMI but you're going to need to do that with just about any below 20% down loan product still on the market.

If you really have only 15,000, you do need to be realistic about what you can afford, though. For one thing, the max purchase price might not be as high as you think it can be, for two reasons: a) the minimum down is 3.5, not 3. So if you're thinking you can take out a 500,000 loan, it's more like 428,000; and b) you won't be able to afford to pay both closing costs up front and your down payment so you'll need to build the closing costs into the loan amount, which decreases the max purchase price further. For another thing, you need to add in PMI to your estimated monthly payment to see how it really compares to renting.

I would run the numbers for your monthly payment including PMI on a $400,000 place (if you want to spend that much) and see how that number compares to renting a similar place before concluding that you should not save further.[/quote]

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