Yeah but we still have to pay pmi, and that just pisses me off. There aren't alot of people who will be willing to part with 20%. I worked hard to keep my credit great, pay my bills in time and this is what we get for it. Having to pay for lender's mistakes
Just get a conventional loan. You can get one for as little as 5% down now. They have a staggered PMI rate based on how much you put down. You should be able to Google it and find one. Their PMI rates are also much lower than FHA PMI rates. The trade off is their mortgage rates are usually a little higher. I ran numbers in a spreadsheet and always came out ahead going with conventional. This turn of events is just another reason to go conventional.