FHA vs borrowing 20% down payment for conventional from family

[Anonymous]

Trading money in the family can be a good thing and a bad thing.  I'd much rather give my mom a few bucks every month than the bank, but if things go south I'd rather walk away from the bank than my mother.

Just write everything down...the more clear everybody's expectations are the more likely everybody is to be happy.  I'm sure there are some templates on the internet.

...re the 15 year term...I really wish I had signed a 15 year loan.  I've been making extra payments all this time that cover most of that delta but I'm stuck with a higher rate and the 5 year timer on PMI.

[webhopper]

Another option is a conventional mortgage at 5% down; MI automatically goes away when your at 78% LTV; you can also get out at 80% LTV if you haven't missed payments and you request in writing. Your mom can "gift" you the 1.5% and you can "gift" it back when you see fit.

[webhopper]

And FYI having parents that are willing to help is awesome. My parents helped me with buying both of my houses through the gift allowance. In the first case my dad gifted me 5k which I paid back in full with my bonus the following yr. In the second case; my dad gave me his cc to use for 2 months for expenses and paid down balances on my cc and gave me cash to pay bills with. It totalled 6k by January when I closed and I paid him back the 6k in march with my bonus.