Should I pull the mortgage trigger or should I keep waiting? Need help

[Anonymous]

Stats:

EX: 740 FAKO

EQ: 752 FICO

TU: 735 FICO

Liquid cash available for DP: $30K

House type:   Row home, existing (downtown)

Price range: $250K-$300K

Loan type: 15 or 30 FHA

Present situation:   Renting.  9 months remaining on lease

Plan to live in property: 12+yrs

According to the FICO Simulator,  EX should be closer to 770 in 12 months and TU at least 750.  Would that put me in the ballpark for the lowest possible mortgage rates?   From all that I have read, it seems those rates don't come easy until you're at least 760 or higher.   I could sell some of my stickier assets to raise more downpayment cash but I would rather use what I already have so I don't have to touch stuff that I would rather not touch (and sell in a bad economy).

I've already let several houses that were perfect for me come and go, and a couple were within walking distance of where I work.   So frustrating!   If I knew I could get a very good rate, I would find someone to sublet at a loss and go ahead, but if all I can get is "average low rates" on my credit scores, I think I might be better off just waiting until my lease expires.

Anyone have any advice?  What would you do?

[Anonymous]

Oops by EX FICO Simulator I mean't EQ.   I also have Scorewatch on EQ.

[ShanetheMortgageMan]

In your situation with at least 10% down and your scores, I'd recommend conventional financing as an alternative to FHA.  The monthly mortgage insurance should be very similar (slightly less with FHA), however you wouldn't have to pay the 2.25% upfront mortgage insurance premium fee (which would be more than the difference in monthly PMI you'd pay on a monthly basis over the time you'd be paying PMI).  720 middle score is all that is needed for the best rates at a 90% loan-to-value.  Should be seeing a 30-year fixed rate at about 4.75%.  Even at 95% LTV/5% down payment conventional PMI rates are a lot more attractive than they were a month ago.  Conventional is making a comeback to being competitive with less than 10% down.