We recently closed a conventional loan for a client who bought a home in Brentwood in February of 2010.  Because he bought after May of 2009 he did not qualify for the special Obama FHA refinance programs which has helped alot of people.  Many FHA buyers do not realize that the Monthly Mortgage Insurance (MMI) that they pay will stay on the loan until the loan has reached a 78% loan to value through Principal Reduction Only.  This means that no matter how much the home has appreciated in value, the MI will stay there.  We recently ran an amortization table on a $250,000 loan amount and discovered that it will take 10.8 years to reduce the principal to 78%.  This will result in MMI payments of $33,000 over the 10 year period.  Because values have had double digit appreciation in Brentwood over the last 24 months, FHA buyers do have equity and options.  As long as they have 10% equity we may be able to put a plan together to get them out of PMI for life as well as lock in historic low interest rates on conventional financing.  If you are interested in getting your loan FHA loan analyzed, give us a call at 925-513-0444