Considerations like down payments, interest rates, and closing fees… When purchasing a property, every little bit counts. It’s possible that having to pay for PMI will prevent you from buying the house of your dreams. Learn more with our 10% Down Payment With No PMI Program.
We at SteveKnowsLoan know how difficult it can be to save enough money to put down on a house. While private mortgage insurance (PMI) is one such obstacle, we have creative lending plans tailored to your specific demands and housing budget that will assist you overcome it.
PMI: what is it?
Private Mortgage Insurance (or PMI) is what many borrowers have heard of. You will be required to pay private mortgage insurance (PMI) on a conventional loan if your down payment is less than 20% of the total purchase price.
PMI premiums are typically between 1% and 5% of the price of the home. The premium for private mortgage insurance (PMI) is often added to the mortgage payment. If you make enough principal payments each month, your mortgage insurance premiums (PMI) will eventually be cancelled.
When Should I Start Paying PMI?
If you can’t afford a 20% down payment on a typical mortgage, your loan is riskier. As a result, the lender will need you to pay for PMI on top of your regular mortgage payment. Borrowers should be aware that PMI does not provide any security. Foreclosure is a real risk if you fall behind on your PMI payments.
Is There Any Way to Avoid PMI?
We provide a methodical approach for borrowers to forego PMI. You might save a lot of money over the course of your loan if you take advantage of this program, which is only available for standard 30-year fixed-rate mortgages. Here’s everything you need to know:
Both first-time and repeat buyers are welcome to apply to our 10% Down Payment With No PMI Program.
- Loan-to-value (LTV) ratios between 80.01% and 89.99% are eligible for this program.
- The maximum allowable debt-to-income (DTI) ratio for borrowers is 45%.
- Minimum credit score required to borrow is 680.
- This program offers loans with minimum values of $200,000.
- For mortgages that exceed the maximum loan amount allowed by the county, a high-balance variant of this program is offered.
Alternatives exist if you see PMI in your future. With the help of our devoted loan professionals, our clients are able to save both time and money on the financial side of purchasing a house. Get in touch with us today if you’re interested!
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Call Steven Jackson at 813-616-9411 now!
