Private Mortgage Insurance an Alternative to FHA financing?

Private Mortgage Insurance companies are getting back to the insuring of mortgage loans. Many have reduced their premium and have expanded their mortgage insurance coverage so that they will now insure 97% of the total sales price of the home. Though the credit qualifying is tough, with a minimum credit score of 720 and maximum debt to income ratio of 41%, It is still an alternative to FHA financing.  If a borrower pays a 1% charge at close of escrow their annual MI is 0.61%. This is 0.54 less expensive than FHA loans. Fannie Mae's My Community Mortgage program will fund loans as high as 97%. However, the rate is typically  .25 higher on the rate than regular Agency Fixed loans. So, though I do not think this program is going to save the borrower much money, it might be an alternative on some loans that will not pass FHA's tougher property standards.