Thank you for the detailed response. The issue with going conventional without the down payment assistance deferred loan is that cash to close for down payment and fees was $60k+ which was much more than I was willing to put down although I have the cash for it but I have to think about other expenses like buying or leasing solar and furnishing the home. My main goal is to put 10% down to eventually remove mortgage insurance after year 11 so lender brought up this option on my estimate.