How to avoid mortgage insurance with less than 20% down payment?We understand that there are low down payment programs out there for our buyers such as FHA loans with 3.5% down payment and VA loans with zero down. If our buyers are not eligible for VA loans and would like to find an alternative to FHA loans with mortgage insurance (MI), are there other alternatives to avoid MI? We have heard of a loan program from Union Bank with no mortgage insurance- 5% down payment but only for those whose income are below a certain limit. Any other low down payment programs out there (as little as 5%) without the additional mortgage insurance premium payment that increases our buyers' monthly housing payments?October 16 2012 - Carlsbad00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.