10% down no PMI?

[Anonymous]

We both have credit scores over 800, but can only do about 10% down. Is there a way to avoid PMI that doesn't raise the interest rate? I have heard/read conflicting things. Thanks!

[Anonymous]

Never a good idea to only put 10% down on a house, and in most cases yes, you will have to pay PMI.

[Anonymous]

This was 3.5 years ago but we were able to do 11% down and a 9% HELOC with a good rate and no early pay off penalty. We hadn't 20% but it would've wiped out our emergency savings.

We have paid off almost the entire HELOC and last year we refinanced and lumped it back into our regular mortgage. It worked for us.

[Anonymous]

Anonymous wrote:Never a good idea to only put 10% down on a house, and in most cases yes, you will have to pay PMI.

Why not? It would probably take another 5+ years to save 20% while renting a place large enough for our family. By then, we might be completely priced out. We are looking way under what we're qualified for so we can comfortably afford the monthly payment with only 10% down. It seems like a better idea than renting until we're 40.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never a good idea to only put 10% down on a house, and in most cases yes, you will have to pay PMI.

Why not? It would probably take another 5+ years to save 20% while renting a place large enough for our family. By then, we might be completely priced out. We are looking way under what we're qualified for so we can comfortably afford the monthly payment with only 10% down. It seems like a better idea than renting until we're 40.

I wouldn't worry about being priced out. Prices probably will go down with new tax code and loss of mortgage interest deduction, etc., although interest rates could go up. The 20% down rule is there in case you lose your job you don't lose your house, among other reasons. Nothing wrong with renting until you jade even the d/p, and don't let realtors or mortgage brokers tell you otherwise.

[Anonymous]

Is this in DC? If so, it can be hard to get approved with less than 15% down on a jumbo, which covers most loans in this area. Be very careful in reviewing the terms.

[Anonymous]

We did it this past September. 10% down, no pmi but interest rate was 4.25%. Worked for us because it got us out of renting and into a house with the same monthly PITI as our rent, but we're still able to build equity.

[Anonymous]

I have a 30 year fixed at 3.75 no pmi with 10 percent down. Prosperity home mortgage

[Anonymous]

I just did 10%, no PMI, 3.70% 30 year fixed on a jumbo in DC. It's possible, but at least in my case, it was through a company deal.

We had the money for 20% and were way over qualified for the size mortgage but we like to keep 100k liquid savings for emergencies and we wanted a very generous amount of cash for renos since it's an older house.

[Anonymous]

Anonymous wrote:We did it this past September. 10% down, no pmi but interest rate was 4.25%. Worked for us because it got us out of renting and into a house with the same monthly PITI as our rent, but we're still able to build equity.

You're probably not building much equity with the higher interest rate, and also not benefitting now that the standard interest is doubled and with changed rules re interest/tax deductions.

[Anonymous]

Yep, be a doctor.

[Anonymous]

We did an 80/10/10 with PNC last july @3.875 and no
PMI. Good luck!

[Anonymous]

Navy Federal Credit Union has no PMI mortgages. Also, NASA Federal Creit Union has no PMI mortgages for first-time buyers.

(I got the NASA Fed mortgage 4 years ago when I bought my house, and I had no issues. Also, I just did a Navy Fed refi w/ no PMI...saving $100/month.)

[Anonymous]

Anonymous wrote:Is this in DC? If so, it can be hard to get approved with less than 15% down on a jumbo, which covers most loans in this area. Be very careful in reviewing the terms.

It wouldn't be a jumbo. The max conforming loan amount is $679,650 and we would borrow less. We've been pre-approved for a loan up to that amount with 5% or 10% down.

[Anonymous]

Anonymous wrote:Navy Federal Credit Union has no PMI mortgages. Also, NASA Federal Creit Union has no PMI mortgages for first-time buyers.

(I got the NASA Fed mortgage 4 years ago when I bought my house, and I had no issues. Also, I just did a Navy Fed refi w/ no PMI...saving $100/month.)

I'm a Fed, but don't work for the Navy or NASA. Any chance I can still join? I will also look into my federal agency's CU.