FHA vs ConventionalMy fiance are shopping around for homes right now in San Diego. Aside from the sticker shock (we moved here from the Midwest), we're really enjoying it, but the financing options are making my head spin. Perhaps you can help.Our "mortgage planner" (to whom we have no obligation) thinks we should go with an FHA loan because of the low required down payment. I'm skeptical because of the nasty UFMIP numbers and the monthly MIP numbers. I don't see why we would do that when we can afford at least 10% down (currently in cash) and we have good credit. We could even afford 20% down, but that would require some liquidation of lots of my stocks/mutual funds/ETFs. Both of us have good FICO scores (770s and 730s). The mortgage planner says that I should keep my investments so we can have the low down payment and keep the option to "streamline" later on.I see three main avenues here, and would like to know which makes most sense:1. Go with the FHA Loan2. Sell enough assets to get a 20% down payment together and avoid PMI.3. Doing some sort of "piggyback" loan (like an 80/10/10).A few other considerations:-My fiance is an MD, which qualifies us for a "Physicians Loan." Those offer some preferential treatment.-We're leaning toward doing a 5/1 ARM, since we will probably want to upgrade when my fiance finishes residency (meaning big pay bump).September 25 2009 - North Park00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.