Hi, I am one of your contacts & just happened to be looking at my contacts questions. I work as a mortgage lender (for last 22 years). Please do NOT go with anyone on Y/A who calls you "dear". Know what I mean?? They are the desperate lenders who will rip you off!. Don't go to Wachovia- have you heard todays news about them? Someone on here mentioned a gift of equity- good idea. FHA has really good programs, no loan limits- low fixed rates. You can go to www.fha.gov - there is a place to key in your zip code to find an FHA lender approved in your area. Call them for free pre-approval. If a lender is FHA approved you are assured that they have been looked at HARD by the government. I believe it took my company approximately 6 months for approval- which was 10 years ago- it takes even longer now. I would suggest your daughter go 30 years for lower payment- then if she makes one extra principal payment per month it pays off in 15 years. She should expect to pay about 2-3% in closing costs which may include origination, flood cert, credit bureau, processing, title insurance, closing fees, doc prep, and recording of the deed or mortgage and state taxes. Also she will be required to set up escrows for homeowners insurance and property taxes. FHA normally requires 3% down but if there is built in equity of at least 15% then you can use the gift of equity program instead. I hope this helps, feel free to email me if you have any questions.