Posted on: 18th Dec, 2012 11:13 pm
My DH wants to buy a house. We are looking at a house around $240,000. We could probably put 10% down. Are lenders still doing 80%/10% and him 10% so that we can avoid PMI?
You will have to make at least 20% down payment if you are thinking to obtain a conventional loan. It is difficult to get loan approval without making the necessary down payment. However, if you can make only 10% down payment, then you will have to offer your PMI to the lender so as to get home loan approval.
A traditional requires you to pay 20 percent as down payment and hence you might as well opt for that. However, if you're keen to go for Private Mortgage Insurance, then you can mete out 10 percent as down payment on your loan.
Hi Kelly,
You will have to pay 20% down in order to get a conventional loan and avoid PMI (Private Mortgage Insurance). If you give 10% down, you will have to go for a PMI or else the lender won't offer you a loan.
Take care
You will have to pay 20% down in order to get a conventional loan and avoid PMI (Private Mortgage Insurance). If you give 10% down, you will have to go for a PMI or else the lender won't offer you a loan.
Take care
You will have to make at least 20% down payment if you are thinking to obtain a conventional loan. It is difficult to get loan approval without making the necessary down payment. However, if you can make only 10% down payment, then you will have to offer your PMI to the lender so as to get home loan approval.
You can also obtain a mortgage loan with much less down payment. For an FHA loan, the down payment requirement is 3.5% of the current value of your home. Again, if you are a veteran, then you can get approved for a VA loan with no down payment at all.
20% down payment is more of a misconception. You can find conventional mortgage lenders charging much less down payment. You need to however shop around.