Can I buy a house with no money down & no PMI but can still get a loan?

Question

I am just wondering if there's any way I can buy a house with no down payment, low interest and no PMI but can still get a loan.
If yes... How?

I do have good credit score tho!

Answer 1

Any time you finance more than 80% of your purchase price in one loan, you'll pay something extra for it. Whether it's PMI, or a higher rate that the lender uses to insure the loan themselves, you're paying for it one way or another.

The alternative is to get an 80/20, where you finance 80% on your first mortgage and 20% on your second. You avoid MI, but you have a higher-rate 2nd mortgage instead. With good credit scores, this is often the cheaper option still, but with MI now being potentially tax-deductible, both should be considered, especially depending on how long you plan to be in your home. The longer you stay, the more sense the MI option might make, since MI can be dropped eventually.

Answer 2

Yes in some cases PMI is waved because of how high the credit score is. There are programs available for home purchases that finance up to 100 percent. You have the option of doing an 80/20 also, but the interest rate on the 20 is higher and you don't get as good of a blended rate. I am a broker and can answer any other questions you have.

Answer 3

To answer your question, "typically" yes if you have at least 20% equity in your home then your lender may remove the PMI from your loan or you may have to do a refi with your current lender to remove the PMI. Not all 100% financing has Borrower Paid Monthly MI, some have lender paid MI, but the lender will make that up somewhere and most of the time it is in your rate. If you wish to explore your financing options, I can also help, just email me. Clinton Shepherd Wachovia Home Loans

Answer 4

Yes, you can with good credit...it's called an 80/20 loans and most any lender has these.

If you have been in the military, VA loans also do 100% financing in one loan with no PMI.

Answer 5

You might be able to do that if your credit score is well over 800, you have very substantial assets, and an accordingly high income.

In other words, you need to be sufficiently wealthy and solid that a lender has absolutely ZERO fears about your ability to pay this loan. It happens rarely. Those with that type of financial basis can generally purchase a property out of petty cash.

Answer 6

in Texas the answer is yes, it is an 80/20 loan.