PMI Question for 1st time buyer (loan, escrow, approved, credit)

[aplous]

Hello-

This question has probably been answered, but Im about to purchase my first house.

Are there any lenders that have programs that for loans in which I wouldn't have to pay PMI? I thought that I had seen this in the past.

Looking to put about 5% down on a 200k loan.


Thanks for the help!!

[Elke Mariotti]

Originally Posted by aplous

Hello-

This question has probably been answered, but Im about to purchase my first house.

Are there any lenders that have programs that for loans in which I wouldn't have to pay PMI? I thought that I had seen this in the past.

Looking to put about 5% down on a 200k loan.


Thanks for the help!!

It's a new ballgame out there - more like old times!

Less than 20% down on a primary residence = PMI
FHA (min. 3.5% down) has MIP

In fact, some lenders won't issue the final commitment for a mortgage until after PMI has been approved (if less than 20% down).

[AndrewSoss]

Originally Posted by aplous

Hello-

This question has probably been answered, but Im about to purchase my first house.

Are there any lenders that have programs that for loans in which I wouldn't have to pay PMI? I thought that I had seen this in the past.

Looking to put about 5% down on a 200k loan.


Thanks for the help!!

You can try to get LPMI, which is simply taking a higher rate and your lender is purchasing the PMI. Could be a better option, just depends on your specific tax situation as well as how long your anticipate keeping the loan and how quickly you think that you will be able to get below the 80% mark to remove the PMI.

[LeftCoastee]

Only non-PMI options I've heard of are a VA loan and Fannie Mae's HomePath mortgage (if you are buying a Fannie Mae owned home that qualifies).

Both have very specific qualifications.

[VictorBurek]

If your credit is good enough, do a 80/15/5 mortgage.

That is a 80% first lien, 15% 2nd lien and a 5% downpayment. Structuring the loan this way will allow you to not have to pay pmi since the first mortgage is at 80%. Also, this allows you to waive escrows meaning not give your money to the lender to hold to pay your taxes and insurance, rather you hold your own money and pay your own bills. (If you have a problem saving money, set up an escrow account)

[dad2jules]

Originally Posted by VictorBurek

If your credit is good enough, do a 80/15/5 mortgage.

That is a 80% first lien, 15% 2nd lien and a 5% downpayment. Structuring the loan this way will allow you to not have to pay pmi since the first mortgage is at 80%. Also, this allows you to waive escrows meaning not give your money to the lender to hold to pay your taxes and insurance, rather you hold your own money and pay your own bills. (If you have a problem saving money, set up an escrow account)

Who are you using for your 15% 2nds anymore? The last lender I had doing them quit about 2 months ago.

[booker_one]

doesn't bank of america do it for 5% down?

[dad2jules]

95% LTV in one loan is different than an 80/15. Yes, 95% is available but I have some clients that want to avoid morgage insurance.

[LeftCoastee]

Originally Posted by dad2jules

Who are you using for your 15% 2nds anymore? The last lender I had doing them quit about 2 months ago.

I agree, I haven't found a lender to do it recently.

[VictorBurek]

I use Certified Funding and IBC. They both go to 95% CLTV.