from my research and talking to others....I am not eligibale for FHA because of the value of the house and income level? They say if I put anything less than 20% I have to pay PMI or in FHAs case some extras which I do not want to do. Doing PMI on a FHA is a bad decission because you have to pay the PMI for a long time. Please note that I am in NY state.
For conventional without 20% down...you have to do PMI. When you own 22% of your home...PMI automatically removes. or when you get 20% you have to do written request to the bank.
If I were you id buy that house, go conventional with 5 percent down and do LPMI and keep the rest of the cash in the bank for your reserves.