FHA keeps looking better as we take into account the FNMA / FREDDIE MAC changes regrading clients with FICO scores between 620 and 679.  Please review the following information.  I believe that you will consider FHA as a viable option.

                                                                       90% LTV

                                           CONVENTIONAL                                                                     FHA

                          679-660            659-640              639-620                                            679-620

Rate                    6.375%             6.375%               6.375%                                                6.5%

Points                  0.75                 1.25                   1.75                                                     0

Up Front PMI

                           0                      0                       0                                                          1.50%

Loan Amount       $250,000.00       $250,000.00        $250,000.00                                         $253,750.00

Monthly MI Factor  0.52                  0.52                   0.52                                                    0.50

P & I Payt.           $1,559.67           $1,559.67          $1,559.67                                             $1,603.87

MI Payt.                   108.33               108.33               108.33                                                 104.17

Total Payt.           $1,668.00           $1,668.00          $1,668.00                                             $1,708.04

Additional Cash Required

                          $1,875.00           $3,125.00          $4,375.00                                                   -0-

At a 90% LTV the conventional mortgage payment drops below the FHA monthly payment, but the up front point cost increases from -0- with FHA to a minimum of $1,875.00 to a maximum of $4,375.00 with the conventional mortgage program.

The concern about FHA and its repair requirements has been addressed with the almost 2 year old changes made by FHA to its appraisal guidelines.

Check out FHA in 2008.  It is looking better and better.  We at McCue Mortgage can't wait to show you the benefits of FHA.