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02-08-2008, 12:47 PM
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Member
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Join Date: Oct 2007
Location: Thousand Oaks, CA
75 posts, read 110,494 times
Reputation: 33
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Less than 20% Down Payment
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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02-08-2008, 01:03 PM
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Real Estate Agent
Status:
"Thinking about getting motivated to work on a project..."
(set 1 day ago)
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Join Date: Oct 2007
Location: Salem, OR
4,350 posts, read 2,630,797 times
Reputation: 1622
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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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02-08-2008, 01:03 PM
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Real Housewife of Dallas
Status:
"Enjoying the Awesome Dallas Fall weather :)"
(set 24 days ago)
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Join Date: Jun 2006
Location: The Big D
11,440 posts, read 11,185,370 times
Reputation: 3299
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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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02-08-2008, 01:10 PM
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Come visit Willow Spring
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Join Date: Feb 2007
Location: Willow Spring, North Carolina
469 posts, read 480,339 times
Reputation: 122
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Quote:
Originally Posted by Silverfall
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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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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02-08-2008, 01:29 PM
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Not a member
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Join Date: May 2007
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,520 posts, read 1,154,965 times
Reputation: 550
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Quote:
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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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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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02-08-2008, 01:31 PM
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Real Housewife of Dallas
Status:
"Enjoying the Awesome Dallas Fall weather :)"
(set 24 days ago)
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Join Date: Jun 2006
Location: The Big D
11,440 posts, read 11,185,370 times
Reputation: 3299
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Quote:
Originally Posted by leavingbyron
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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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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02-08-2008, 01:36 PM
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Real Estate Agent
Status:
"Thinking about getting motivated to work on a project..."
(set 1 day ago)
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Join Date: Oct 2007
Location: Salem, OR
4,350 posts, read 2,630,797 times
Reputation: 1622
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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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02-08-2008, 02:17 PM
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Come visit Willow Spring
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Join Date: Feb 2007
Location: Willow Spring, North Carolina
469 posts, read 480,339 times
Reputation: 122
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Quote:
Originally Posted by Silverfall
NCMommy,
In this market, you are stellar! Most loans still exist, they are just harder to qualify for.
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For once this week.. I feel good. THANKS! |
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02-08-2008, 02:29 PM
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Competition breeds winners
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Join Date: Sep 2007
16,121 posts, read 5,449,869 times
Reputation: 1637
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Quote:
Originally Posted by Shikaka805
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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02-08-2008, 04:39 PM
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Member
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Join Date: Oct 2007
Location: Thousand Oaks, CA
75 posts, read 110,494 times
Reputation: 33
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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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