You should be very cautious about these loans. Seeing the current economy, I will recommend to wait. I would say to rent for the time being and let this whole stuff get settled. Putting down just 10% and then paying more will stress out your monthly payments. Watch out your income/debt ratio before jumping on these loans.

Great Answer Tom,

I work for Bank of America and we do offer a no PMI loan with as little as 10% down. I'd be glad to look at your scenario and see if you qualify. You can contact me directly or go to my website and fill out at application at http://www.tgrech.com

A lot of lenders offer a "no PMI" or "Lender paid MI" loan with as little as 10% down. It's probably going to require at least a 680-700 credit score, and it would have to be a house as opposed to a condo or townhome.

The catch is that the rate is probably going to be about 0.5% higher than a corresponding loan with PMI. That is the risk trade off. So in determining if this is the right loan for you, you should compare the monthly payments on each, the savings, and determine your time frame for staying in the home. Because as Tom indicated, PMI is cancellable or falls off at some point in time, while a loan with no PMI will never see a decrease. At some point in time the scales can tip in favor of one or the other.

Contact me if I can be of assistance

Tony

Hello Ishaq,

Did you find your property or are you still looking?

If you are still looking then I can get you pre-approved. With a pre-approval in hand you can shop around comfortably and confidently.

If you have found your property, I can get you approved ASAP.

Look at all the rates, charges - compare apples to apples. It would be my pleasure to help you.

Jacob Varghese
Mikasa Homes and Funding
408-505-5797

Thank you all for a quick response. Appreciate you taking time out and respond.

Ishaq,

The phrase I would like to focus on is that of the "cost saver". The cost of a loan is, in part, tied to the risk of the loan. PMI is a monthly fee paid by the borrower to offset the risk to the lender of a smaller down payment. Lenders offering no PMI on a 90% loan have the same risk and will therefore increase the cost of your loan somewhere else to compensate.

No PMI can be a good strategy, but PMI is cancellable after a certain point in the loan. If you absorb a higher rate in lieu of PMI, that cost will be charged to you for as long as you have the loan and could be more costly depending on how long you intend to keep it.

I would recommend you find a lender and agent in your area (like the folks that have responded below) and discuss all of the options.

Hi Ishaq,

I refer lots of people to Kathy Matt of AMG in Fremont - if anyone can help you save money, Kathy can! Call her at 510-494-2118 or email kathy@amgloans.com.

As for saving money on the home purchase, my company, Sidewalk Homes http://(www.SidewalkHomes.com) rebates up to 50% of our commission directly to our buyers. For more information on how it works, visit http://www.SidewalkHomes.com.

Hi Ishaq!

There are plenty of lenders that can get you 10% , no PMI..but they'll need to know your specific situation to work something out for you. Good Luck

Kamal Randhawa
Broker
510-932-1066

Hi Ishaq,

Please call me to discuss your specific lending needs. Once I understand your situation clearly, I will contact various lenders on your behalf to make sure you get the best rate.

Best regards,
Rich

Richard Hoag
Premier Realty Associates
925.876.1460
rich@richardhoag.com