Any chance of getting a 5% down loan without PMI?

If you are not in a "declining market" then Bank of America's no fee program may work for you.  Other options seem to be not worth the money.

That said, what lender offered you no PMI for 10% down and in what part of the country?  

Where are you looking to purchase? This will help with the answers.

K,

Yes,  It can be done  with thos FICOS. I am in FL (DECLINING MARKET) But even if declining where you are.. Owner Occ SFR at 95% has a "price hit" for NO MI TO YOU (We call it LPMI) of 1.2 points.. Translation to a borrower...  If you put down 5% and paid the MI yourself and got rate X... the only difference in closing costs to maintain rate X  is 1.2 points...   THE LENDER:

AMTRUST.. just got off phone with them.  Hope that helps... Others should have similar types of LPMI is what we call it, loans.. the difference is simply hits to pricing to absorb the cost of insurance paid by the lender.  Keep rockin' and good luck in new home.

thank you for the replys. It was a Weichert Lender, and the property we want to purchase is in a desired location in Alexandria City, Virginia. The townhome is already under contract, and inspected...the closing date is in 60 days. The lender offered us a 5.65% 10% down rate with 2 points (the closing cost is about 13k). IF there's a chance we would rather put only 5% down, at a slightly higher rate (we need some money to upgrade the home, it's in a great condition, but a new kitchen/bath would be nice) we can put 25k down + the closing cost of 13k.

the property is in alexandria, VA 22304, right on the border of 22314 (very desired)

K,

Never heard of 5.65 rate but maybe 5.625% rate... Anyway...  How bout moving the rate up... (absorbs the points) and putting the additional Down payment. There are many ways  you can "skin the cat" with the same loan and keep your fixup money stash AND avoid MI...  If you shed the points... you would knock off $8G's at the table.. Yes a slightly higher payment, but yo put the 8 towards down payment instead of costs....  I can't do your loan, but if you want me to walk you through it... click and call me and I'll help.  Sometimes typing is more vague.  Keep rockin' and you will enjoy the home.

Karolina;

  I can help you out with this.  Click on my link and email me with the property taxes.  I will come up with a couple of options for you to consider.

You can avoid traditional PMI by working with a lender who can offer what is called:  Lender Paid PMI, or LPMI....  This will take one loan at 95% with no PMI payment-  the PMI is simply built into the rate, and the lender covers it... but you will not have a PMI payment.... also, since it is completely built in- it is fully tax deductible.

Though PMI is tax deductible this year it does not mean it will remain that way.... LPMI is about the best way to go in my opinion.

PMI or LPMI is not a bad thing Karolina- afterall you are getting around having to put down 20% right???

JY and Karolina,

Agreed about the MI thing... Every loan that FNMA does above 80% requires it.. How it is packaged to the borrower is the only difference...  I am sorry that MI is almost a dirtier word than subprime... K,  You are in great shape financially, so there is not a wrong answer.. There are options at 5% down in your area to choose from, but in reality they are much the same.  The only and I say only down side to LPMI or builtin no MI as Wiechart was pitching it, is that when you reach 80%... the rate stays up where it started and the monthly MI  (more expensive while you have it)  can be removed and the end result is a lower note rate/payment in the long run... No wrong answer though... Good luck and enjoy the home...

might want to check US BANKS  95% no  MI program .....not sure if its out in VA .....similar to LPMI ....30 yr fixed rates > 6% though

I was wondering about the 5.65% rate since Karolina was looking for a 95% loan.  I understand that this rate may be only available for an 80% loan to value.   Is this rate available for 95% loan to value loan or will she have to pay a higher rate?

Lew 

PL,

Rates are not determined by LTV for FIXED RATES from FNMA... Pricing for rates is determined by credit scores and purpose (PUR or CASHOUT REFI, ETC)..IF, however you are "comparing" rates without mortgage insurance or where the borrower pays the MI themselves if the loan is above 80%... the rate (or pricing for the rate) is less than that where the Lender states that the loan has no MI (not really true with a FNMA loan).  Bottom line is for good-excellent credit scores...  90% loans to "remove the MI... same rate has a "surcharge" in costs of .90 points (to you  1/4% rate)... for a 95% loan  (surcharge 1.2 points... or usually 3/8% rate).. The question for camparison's sake is simply... Are you gonna get your LTV down to 80% in near future.. If so... pay the MI.. and get the better rate.. If the answer is NO... Take the LPMI or No MI deal... easier, more convenient, etc...  Good question.  FYI,, Karolina was payigng 2 points at 90% to "get rid of the MI"... The rate or costs will go up if available to get a 95% loan.  Tehy are not the same price.  Keep rockin'.

I really hate telling people to pay points on a purchase... it's never EVER made sense to me.

It's because It makes the rate appear better... We all get to stand around the water cooler and pull our slacks up like Barney Fife and say, "Ange... (sniff), well I got 5.125%..."  Barn,  how many points you pay as you locked the sam day I did ?.....   Can't remember.  Nobody can remember..  Uh, hello Alzheimer's Mortgage... Did we put you in a 2/28 2 years agon and promised to REFI you without cost or problem..........???????  I can't remember....

We'll remember this problem as it will be the watershed event of anyone in the mortgage/RE business during this time...  Book that and remember it.  Keep rockin'.