Updated over 5 years ago on .
Down payment assistance programs
Hi friends..
I'm in the process of buying my first investment property and have been presented with a few loan assistant options. I wanted to get some advice on the best route to take. Each program is from a different lender so wanted to get a unbiased opinion on which route you would take.
Option 1) 100% financing with interest rate around 4.2%. No PMI.
Option 2) up to 5% downpayment assistance at 3.2% but would have to pay PMI. However we would have some instant equity.
We are looking at homes around 200k. I hate the thought of paying pmi but seems if we go to option 1 we would be paying more interest anyways. Both loan options equal out to about the same per month on the mortgage.
Anything I'm missing here that we should keep in mind when making a decision?
Appreciate any insights here.