i have very good credit. score around 750. i am in the process of buying my first home. i have been looking at a few options on loans. hopefully someone on here will have some experience and can help me.

here is what i have planed to do.
1. look for a used home lower than 120000.
is it better to make a downpayment or to do 100% finiancing. i mean i could make a 3% or 5% downpayment easy but that would cut a big whole into my savings.
with 100% financing my payments are way higher than i imagined them. for a 99000 house my payment would be 840 a month for everything including mortage insurance and home owners insurance. my lender has also gave me a option of doing a 80/20 loan so i will have to pay a mortage insurance that is required if you dont pay 20% or more down. that did help my payments sume at 109000 it is 775 a month. (my interest rate is 6% right now)

2nd option was to save for 6 months or so and buy a new house. i mean these days you can get a decent house in the 140's maybe 130's. i looked at cristo homes and found for a 139000 new house my payments would be 1042.12.(also does anyone know any good home makers in the middletown,monroe area in ohio)

any information anyone has would be great. since this is my first home investment i would like to make it a good one.

It is hard to find a loan that is really 100% financing, and if it is the rate usually stinks. Most lenders require at least 3% into the transaction (can include closing costs). If you put at least 5% down you'll be looking at the best rate, but you will need to pay PMI.

Remember the 80-20 mortgage payment won't be the same forever. It will drop to the first mortgage payment alone when you've paid off the 20% second mortgage, and you will never have to pay PMI.

There are also some lenders out there that will do 100% financing without PMI, but the rate is higher. I work for Credit Unions here in FL. We don't offer 80-20's but if you can come up with 3%, you can buy a home and won't suffer with a terrible rate. Since you have great credit, maybe you have a credit union you belong to and can check out their programs. If not I'd be glad to see if we could help you out.

thanks for the help. i am probably going to just try to save for 6 months and buy a new house. i know 5/3rd does a 100% finiancing with a program for first home buyers. is it better to buy a new house or get a used one? i figure with a new one it will more energy efficent and no worry about anything falling apart for a while. i am just trying to see what my best options would be but with me never buying a house figure i could get some help on here.
i am also changing lenders. my last lender tried to get me into a 80/20 loan where i only pay interest on the 20 part. i have heard that is one of the dumpest things you can do as a home buyer.

I think interest only loans are a bad idea especially for first-time home buyers. You're not paying down the loan so the only equity you're building is what your home appreciates to. Of course it would be different on a 20% second mortgage but you'll never pay off that mortgage with interest only.

As far as new vs. old homes, it's a matter of preference. Keep in mind if you buy from a builder they usually try to make you use their lender, which will not be the best deal for you. If you use your own lender, you normally have to pay the seller's (builders) closing costs (Taxes on the deed, owner's title insurance).

Buying a used home from an owner, the seller usually is expected to pay their share of the closing costs. That's how things are in FL anyways.