Posted on: 23rd Nov, 2012 01:34 am
I want to purchase a new house, have a FICO Score of 770+. I also have a good DTI ratio. I'm looking to put 5% down NON-FHA and I'm curious if any NON-PMI programs exist? Is there any way to get around paying PMI or into an impound account?
A non-FHA loan requires a good credit score and down-payment. You will require a down payment of around 20%. If you don't give this down payment, you will have to go in for a PMI (private mortgage insurance). You cannot avoid that.
Hi Guest,
With a 5% down-payment, you won't get a loan without a PMI. Lender's won't give you a loan unless you go for a private mortgage insurance (PMI).
With a 5% down-payment, you won't get a loan without a PMI. Lender's won't give you a loan unless you go for a private mortgage insurance (PMI).
While taking out a home loan, making 5% down payment is not at all sufficient. As such, you will have to provide Private Mortgage Insurance (PMI) to your lender if you want him to pass on your home loan request.
You can avoid paying the monthly MI by getting lender paid mortgage insurance. That is where the lender charges you a higher interest rate and uses the extra rebate to cover the cost of the mortgage insurance. Feel free to contact our office with any further questions.