Pmi

[livecoug]

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

[Cali Coug]

Originally Posted by livecoug

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.

[Surfah]

Originally Posted by hoyacoug

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.

[DirtyHippieUTE]

Originally Posted by hoyacoug

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.

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.

[UteStar]

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.

[FMCoug]

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.