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.
With conventional you can do LPMI, and just pay an up front fee and your done with PMI for the life of the loan.
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.