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Old 02-08-2008, 11:47 AM
 
Location: Thousand Oaks, CA
75 posts, read 515,446 times
Reputation: 82

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If I put less than 20% down on a house do I have to pay PMI? A friend told me that a bill recently passed that will allow a home buyer to put down only 3% of the purchase price to eliminate PMI. Either he does not know what he is talking about or I haven't listened to the news enough.

Thanks!
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Old 02-08-2008, 12:03 PM
 
Location: Salem, OR
13,741 posts, read 31,562,927 times
Reputation: 12105
He is talking about an FHA loan which is a 3% down home loan. It has always existed. It has been in the news lately as they are talking about raising the limit on it.

Typically you pay PMI for less than 20% down. You can do 100% financing with STELLAR credit, but it is really hard nowadays.
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Old 02-08-2008, 12:03 PM
 
Location: The Big D
14,874 posts, read 36,248,249 times
Reputation: 5787
Your friend is in the wrong. You still have to put down 20% to get out of paying PMI. With the fiasco going on right now w/ the loans I don't see any of them letting something like 3% slide....... YIKES!
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Old 02-08-2008, 12:10 PM
 
Location: Willow Spring, North Carolina
473 posts, read 1,567,040 times
Reputation: 156
Quote:
Originally Posted by Silverfall View Post
He is talking about an FHA loan which is a 3% down home loan. It has always existed. It has been in the news lately as they are talking about raising the limit on it.

Typically you pay PMI for less than 20% down. You can do 100% financing with STELLAR credit, but it is really hard nowadays.
Stellar credit? LOL We are approved for 100% financing up to a certain amount.. wow.. I didn't know i was stellar LOL
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Old 02-08-2008, 12:29 PM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,127,174 times
Reputation: 650
Quote:
Your friend is in the wrong. You still have to put down 20% to get out of paying PMI. With the fiasco going on right now w/ the loans I don't see any of them letting something like 3% slide....... YIKES!
Not if they do an 80/15 combo loan...then they only have to put down 5% and can avoid PMI...


Are those loans even still available in this day?
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Old 02-08-2008, 12:31 PM
 
Location: The Big D
14,874 posts, read 36,248,249 times
Reputation: 5787
Quote:
Originally Posted by leavingbyron View Post
Not if they do an 80/15 combo loan...then they only have to put down 5% and can avoid PMI...


Are those loans even still available in this day?
True. But he was just saying one loan at a very low down payment. As far as I know they still do those. I have relative that never puts a penny down and does the 80/20. Amazingly, they have filed for bankruptcy because of their "wise" financial decisions.
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Old 02-08-2008, 12:36 PM
 
Location: Salem, OR
13,741 posts, read 31,562,927 times
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NCMommy,
In this market, you are stellar! Most loans still exist, they are just harder to qualify for.
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Old 02-08-2008, 01:17 PM
 
Location: Willow Spring, North Carolina
473 posts, read 1,567,040 times
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Quote:
Originally Posted by Silverfall View Post
NCMommy,
In this market, you are stellar! Most loans still exist, they are just harder to qualify for.
For once this week.. I feel good. THANKS!
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Old 02-08-2008, 01:29 PM
 
69,372 posts, read 53,608,091 times
Reputation: 9357
Quote:
Originally Posted by Shikaka805 View Post
If I put less than 20% down on a house do I have to pay PMI? A friend told me that a bill recently passed that will allow a home buyer to put down only 3% of the purchase price to eliminate PMI. Either he does not know what he is talking about or I haven't listened to the news enough.

Thanks!
Raise the price of the home and tell the seller to do seller assist by enough to offset the balance. The seller assist qualifies as a down payment. Check with your bank to find out what the maximum seller assist amount is use the maximum they allow.
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Old 02-08-2008, 03:39 PM
 
Location: Thousand Oaks, CA
75 posts, read 515,446 times
Reputation: 82
Cool Fha Loan

[quote=Silverfall;2765537]He is talking about an FHA loan which is a 3% down home loan. It has always existed. It has been in the news lately as they are talking about raising the limit on it.quote]

Do you still have to pay PMI with this FHA loan?
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