There are several important advantages of the MSHDA Down Payment Assistance (DPA) for Conventional mortgages over what has been traditionally offered with MSHDA down payment assistance. Including:
No upfront mortgage insurance & potentially lower monthly mortgage insurance than FHA (based on credit score). Faster Appraisals - FHA appraisals typically take longer than a conventional appraisal. Mortgage insurance may be terminated at some point in the future. FHA monthly mortgage insurance will remain for the life of the loan. Borrowers may qualify with their income based student loan payments (IBR) instead of the 1% of the loan balance as required by FHA (2 comments)