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How can I obtain a 0-3% down mortgage with no MI?

I had a foreclosure > 5 years ago and have been renting at $1,200 mth for the past 3 years.  My credit has completely recovered but I do not have sufficient cash for a
 conventional 10%-20% down.  I am starting the process early as I do not intend to
purchase until early 2014.  Is there any program or lender that would look at this
type of loan request for no MI?  Advice, suggestions welcomed.
  • July 21 2013 - US
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Answers (8)

VA loans have no mortgage insurance.
  • July 26 2013
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The next lowest is a FHA loan which requires 3.5% down.
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My math skills might be rusty but I'm fairly certain a 3% down conventional would need less down than FHA's 3.5% down.



ahhh,it coming back to me know why agent's need to stop giving mortgage advice.
  • July 24 2013
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Profile picture for Go Huskers
Just so I understand. You defaulted on a loan 5 years ago and now you want another one, but one that offers the lender zero protection against you defaulting?

Does this actually make sense to you?
  • July 24 2013
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Hi User 59859560,

There is not a standard product offering other then a VA loan that does not have mortgage insurance at 0-3% down. "My Community" which is a conventional product offered by many lenders requires only 3% down and has a lower then standard coverage level of only 18% on the dwelling ,so you may like that option.

Quick Fact: Coverage levels on PMI affect the premium the more you put down in increments of 5% the lower the required coverage and premium. 

One of the other post incorrect however, USDA charges .40 premium annually but is also a great option for lower then average mortgage insurance premium but the home has to be in an approve area and the guidelines for approval are more stringent then other government back products like  VA or  FHA loans   

I hope this helps, please let me know if I can be of any further assistance. 
  • July 24 2013
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USDA and VA loan products do not come with MI.
  • July 24 2013
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Profile picture for USMortgageRanger
There are a number of loan at 95% Loan to Value that allow the lender to pay the MI for a higher rate or you can still do a mortgage of 80/15/5. I will need to speak with you in person to determine your needs.

Lowell-S
  • July 21 2013
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USDA has 0 down but any lender over 89% has MI
We have a combination loan with 15% down no MI
but you  need 721 FICO scores.

Pay everyone on time, don't even go to a car lot, don't give anyone your social, don't close accounts just keep saving. :)
  • July 21 2013
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0% down loans are few and the main one is a VA loan. You have to have been in the military for that one.

The next lowest is a FHA loan which requires 3.5% down.
  • July 21 2013
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