A sad state of our economic situation unfortunately. People will be paying high cost, no benefit (for them) mortgage insurance in lieu of that full down payment for at least 10 years. Considering the average lower premium these days (given prices) is around $1,500/yr that shit really adds up once one realizes they still need property insurance and taxes paid.

I’ve seen many people in my life get excited for an FHA loan since they can afford the tiny down payment, only to realize they can’t actually afford the true full cost because of PMI + escrow.

But if it helps escape being locked in renting then it almost always makes sense.