I didn't get a lot of time yesterday (because the loan guy was emailing me like every 2 minutes) to scrutinize this info on FHA loans. This morning (with coffee in me) I re-read the FHA mortgage insurance info he sent me and realized I was reading it wrong. I was looking at the "previous" rule. Apparently the new rule is there will be mortgage insurance on a 15 year loan (with less than 78% LTV) for 11 years.
Plus, the closing costs include another $3106.25 for "Up front mortgage insurance premium" as well as an additional $65 a month in our payment. I'm not sure I am willing to add that kind of cost to our loan. Mostly, it's the $3106 added to principal that I'm not too keen on. I can look at the $65 a month as basically increasing the interest rate offered (3.625% for a 15 year loan) and if/when we sell, it's not part of my principal that has to be repaid, but the $3106 is. Between regular closing costs and this upfront mortgage insurance premium we would be adding $7350 to our current principal owed. That sort of defeats the purpose of trying to save money.
I think I am going to contact a mortgage broker and see if I can find a lender that can do a conventional loan that isn't 65% (the 65% was because it is a manufactured home). I think, based on our estimated home value, we'll probably need to be in the 70-75% range.
I found a broker online that seems to specialize in manufactured home loans and they have a A+ rating with the BBB. Might be worth it to get another opinion to see if there are other options out there for me.
I knew this was not going to be a fun process but I'll survive. Heck, I pretty much already have all my documents scanned and ready now, LOL.