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What is the minimum down payment to avoid PMI?

Posted on: 27th Jun, 2008 07:09 pm
I would like to purchase a 2nd home in Florida. I am told that I have to put down a minimum of 10% or 20% to avoid PMI, is this true?
Is it a true 2nd home or an investment home?
If you have solid scores you can get lender paid MI with some lenders otherwise I would plan on 20% down.
FHA will allow 10% down on a 15yr note no MI
but not sure if they will do a second home? I know they wont do an investment

Good Luck
Brian
Posted on: 27th Jun, 2008 07:19 pm
Welcome sfrosts.

If you make more than 20 percent down payment then you can avoid Private Mortgage Insurance (PMI). But you should talk with the mortgage company to know how the minimum down payment you need to make to avoid PMI because they may have lees than 20 percent rule in place although most lender or banks are strict on this.

Let me know if you have any more queries.
Posted on: 28th Jun, 2008 02:28 am
I suggest that you'd better ask your mortgage company how much you make down payment can avoid private mortgage insurance. Because it is different in some states.
Posted on: 29th Jun, 2008 06:59 am
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