<prompt> Human: Hello,I am 28 years old and make about 50k a year salary. I have about 10k in savings account, and some retirement funds. Im interested in purchasing a small home in my city that is very decent, and I could see myself living there for 5-10years I have no debt really. Just a small credit card balance and small student loan.The house is 80,000. I cant put 20 down, but Bank of America gave me a pre-approval for 3 down on a conventional loan 30yr fixed rate with NO PMI. Estimated mortgage would be roughly 550 with taxes, insurance etc. this is quite affordable for me. Does this sound like a reasonably good deal?? I know its always good to put 20 down, but considering the low purchase price and no PMI, is this a bad deal?? Assistant: Guys,I live in southern Texas. The home Im buying is very nice actually. Its fully renovated inside and out, 31 Its small. 700sq ft on a 5000sq ft lot, its small but cozy. The area is not the best, but its an up and coming area, where property value will be going up with new townhomes and developments at every corner around me. This home is a hell of a deal, Ive already hired an inspector to check it out. I dont anticipate them finding anything major.So should I buy this house even without the 20 down??? Whats the difference between mip and PMI?BoA says they arent requiring me to pay PMI on this special first time home Buyer program. Is there a catch to this??  <response>: I bought a home in Florida for 73k with 3 down in a 2013; like yours the house was small but nice in an up and coming area. It now appraises for about 120k! As long as you can see yourself staying there for a while this sounds like a great investment. 