We buy premium salads and fruits to balance out the times we go out to eat.Fruit isn't cheap but as my martial arts instructor says people either pay now or later.

I found this very interesting ...Mortgage brokers on the other hand do charge a premium on the rate and so it is usually to your benefit to price shop and negotiate for better rates.FHA actually is pretty explicit about their credit requirements.

Based on this you will decide based on a number of factors, primarily qualitative, whether you will pay a premium, market rate, or require a discount from the market rate NOI.

I am also  looking at Main Street Capital Partners Ron Happe and it looks like a good deal  compared to other premium mentoring courses and their passive investment returns are also higher than other note investment companies. https://ecourse.notemogul.com/training

Their premium policy covered it.

But for now my gut is telling me the predictability and peace of mind is worth the pre-hung premium.

yes to be simple, FHA requires 1.75% UFMIP (up front mortgage insurance premium) which is usually financed into your loan so even though FHA is 3.5% down or 96.5% loan to value it will end up being 98.189% LTV at the end of the day.

Some with buyers premiums, some without.  

The home is in great condition, 8 years old, no major issues.I explained to him what a lease option was and what the benefits of it was, and he seems really interested and was willing to let me help put together a deal after his listing expires.My plan was to find a buyer tenant, assign contract to them for small percent of home price (keep myself)and let my friend obtain more of the benefits such as rent premium, amortization, and all the equity.

What's up with the massive premium?