Re: Looking for some general advice about buying my first house.
There are lots of banks now that'll give you a slightly higher interest rate in exchange for no PMI. REcently banks started realizing that for decent credit individuals its better for them to self insure their own mortgages and charging 1/4 point or so more in interest.
Another way to avoid PMI is to have the seller carry a second mortgage for the other 10% of the purchase price. That is better for you anyway since the extra payment is going toward building equity rather than into the pocket on an insurance company.
If I were a pro gambler, what I'd probably do is start by approaching small local lenders - credit unions and local banks. They have a lot more flexibility than the big boys and if you can plead your case effectively, you should be fine. If you've got two years of living expenses saved in cash and 10% to put down, I can't see you having a problem getting a loan. Banks love liquid assets. For a small bank/CU, you want to be sure to transfer your liquid cash into one of their savings accounts. That'll be a little carrot for them to try and work something out.
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