Conventional 20% Down Mortgage
Often the best choice for a mortgage as it offers the most options (30 year fixed, 15 year fixed, ARMS etc), the lowest fees, and the lowest rates. It does require proof of earnings and a substantial sum of money to put down.
This loan has similar rates and fees to a 20% down loan, but higher mortgage insurance, notably a 1.75% up front Mortgage Insurance Premium (UFMIP). FHA Loans have a 3.5% required down payment, and require monthly mortgage insurance payments that can never be removed (unlike a Conventional Loan). The interest rates are generally higher, but slightly lower than a physician’s loan. However, when the monthly MIP is added to the rate, it is often higher than a physician’s loan.
This loan requires that you qualify for VA benefits, which disqualifies many. It is an improvement on the FHA loan in that the 3.5% down payment is not required and there is no mortgage insurance requirement. Rates are similar to FHA rates, but the 2.15% funding fee is higher (as compared to the UFMIP).