Pmi
 

how do i avoid PMI on a loan without 20% down? any sneaky ways?

Just do an 80/20 loan. You put 0% down, but take out 2 loans, a senior and a junior, at 80% and 20%.

You will not pay the pmi.

Just got pre-approved and received my good faith letter going this route. It's the way to go.

Mrs. Hippie and I are doing this as well. We plan to turn the house in 3 years so we went with a variable interest only on the 80% loan with as low a rate as possible. We pay the interest on the 80% and then pay the principle we would have paid toward the 80% to the 20% loan (higher interest). Our payment works out to be the same and we will have sold the house before the interest rate bumps on the 80% loan.

If you're planning to turn the house fast, it's a really good way to go.

On all of my home loans, we have done an 80/15/5 split. We take a main home loan of 80% of the house, we then have a 15% HELOC and then we put down 5%. This allows us to have a little money left over in the HELOC (the full HELOC is for 20% but we only draw 75%, the other 25% of that loan is what we paid on the downpayment). Doing it this way allowed us to get a better interest rate on the loans.

IMO, any mortgage broker who does not reccommend this route to you from the get go is an idiot. If someone is saying you have to pay PMI, shop elsewhere.