I am about to close a mortgage loan for a HUD property which I had originally opted for a USDA Rural @ 3.25% for a sale price if $135,500 for 30 years. I just got the bank appraisal which states its value at $157,000.
The current Conventional loan rate is at 3.875% and they ask for 5% down payment.
If I put in a down payment of $15,000 for the conventional loan, would I be able to automatically get rid of the Mortgage Insurance or do I still need to put in 20%+ down payment?
Should I just stick to my 3.25% USDA Rural loan then?