Home Buying in 92656>Question Details

OC92708, Home Buyer in Fountain Valley, CA

Do you need 20% down in order to avoid paying PMI?

Asked by OC92708, Fountain Valley, CA Tue Apr 10, 2012

We have 2 rental properties and our primary all with equity. We are thinking about selling out primary to relocate, but because of the market, we would be losing money on the property. Even with additional money down, we might not have 20% of the houses we are looking at in AV. Any ideas or are we stuck in our house until the market recovers a bit?

Help the community by answering this question:


You have a couple of options:

1.) 1 1st and 2nd combo

2.) 1 loan at 90% LTV with lender paid MI included in rate, and some rare ones have none at all

as far as I know right now, this is up to $1Mil and a couple go to $1.1Mil
Web Reference: http://www.loanshoppers.net
0 votes Thank Flag Link Sat Mar 1, 2014
You have a few options to avoid monthly mortgage Insurance with less than 20% down!!

1) You can take a loan with lender paid mortgage Insurance up to 97% loan to value!! We underwrite these as a Direct lender.

2) We issue 80/10 purchase loans which is a first mortgage with an Equity line behind it up to 90% of the purchase price, all the way up to $1 million. This is a great option!!

3) If you are a veteran you can get 100% financing with no monthly MI.

4) You can pay a one time borrower paid Insurance premium (BPMI) and mitigate the need for monthly mortgage insurance.

I recommend the first to options but as you can see, you have several ways to make this work and I'd be happy to help you qualify. We offer 24 hour purchase approvals and can close in as little as 14 days.
0 votes Thank Flag Link Mon Oct 14, 2013
Do you have any idea how much your principal residence value is ? How much is your balance ?, there is a program where you do not need to come up with 20% down payment, but lender will change it you on the rate, bottom line is the same thing, send me an e-mail to my address and I would be happy to assisting you to achieve your goal, incacora@aol.com.
0 votes Thank Flag Link Tue Aug 27, 2013
Some lenders offer lender paid PMI and if you can qualify for an FHA or VA loan there is no PMI.
If your are looking to sell and need top dollar for your home feel free to give me a call, I might be able to get you more than you think for your home
0 votes Thank Flag Link Tue Aug 27, 2013
Unbelievably terrible advice and not accurate. Technically true FHA loans have no "PMI" (Because it's not "private" MI) but they do have mortgage insurance. You should stop answering mortgage questions because you clearly are uninformed!
Flag Wed Aug 28, 2013
HI Oc92708,

Perhaps you can get a small line of credit on your rental property to make up for the 20% you need, thus saving the PMI . Since you are in an equity position on those rentals, that may be a possibility. Another option may be to refinance one of them if you haven't already.
0 votes Thank Flag Link Tue Oct 9, 2012
hey Sato, w/o the 20% down, you will be stuck with the PMI, but you are correct, as the valueof your place goes up, that will help, and he PMI will go away in 5 years anyway. I hope this helps. Please callme if you have any questions. Jason 949-933-3768
0 votes Thank Flag Link Thu Apr 12, 2012


I have a application that would give you the information about your home so you can decide whether to stay in your home or to sell it. When you see what you gain in the next 5, 10 years to recoup your lose You will be able to make an informative decision based on several types of information and what you want to accomplish . contact me for further details.
Talk to you soon

Ingrid Ski Realtor
0 votes Thank Flag Link Tue Apr 10, 2012
You can always pay for the private mortgage insurance through a slightly higher rate, called Lender Paid Mortgage Insurance. For instance, a rate might be 4% with monthly PMI, or 4.375% with no MI due to a Lender Paid Mortgage Insurance credit at close that buys out the mortgage insurance. Simply way to put less down, avoid monthly MI, and still capitalize on historically low rates. Give me a call or email for more information. Brian Wiechman, VIP Mortgage Inc, 949-533-9209 brianw@vipmtginc.com http://www.vipmtginc.com/team/brianwiechman Thank you!
0 votes Thank Flag Link Tue Apr 10, 2012

I'm a Mortgage Banker.

Have you considered refinancing the property under HARP 2.0? The federal program came out March 18th and expires December 31st. This program is geared to folks like you.

Feel free to call my cell direct to discuss options.

Best of Luck.

Grant Fawcett
Castle & Cooke Mortgage
Newport Beach, CA
Direct: (949)212-4578
0 votes Thank Flag Link Tue Apr 10, 2012
What you need to look at first to determine how long it might take for "the market" or more specifically, Your Neighborhood to recover from the housing crisis, is to look at how many owners are currently in some stage of default on their homes within a 1mi radius of, your primary, for example.

I talk about this with owners wanting to sell all the time. If you think you'll hold onto the primary for maybe another 3yrs, the housing market will likely not be recovered by then. You may find that if you want to move & you can get out now & go buy the home you REALLY want in Aliso Viejo & stay there for 10+ yrs with the Super Low interest rates that are available today, this will be more beneficial for you vs. waiting.

I'm not a psychic, I can't tell you where interest rates are going to be in 3yrs. They could be at 6.5% OR you could get into the new Primary Now & do that for under 4%.

Please shoot me an email directly so I can talk to you about how many defaulting owners around your primary residence there are & if this is going to hurt home values in your area & for how long. I don't look back on this same Trulia posting for answers after mine.

There are loan programs available where there is no PMI by putting less than 20% down.

562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Tue Apr 10, 2012
Generally to avoid PMI you need to put 20% down. Where is your current home located? Have you had a market analysis done to show you the current value? Prices in Aliso Viejo are really low right now, so you could benefit by selling and buying in this market. Also, interest rates are extremely low, so you may not be in as bad a situation as you think. What are you looking to purchase? You can reach me at: cfleming@coldwellbanker.com
0 votes Thank Flag Link Tue Apr 10, 2012
Hello Imamura !

20% may not necessarily be required nor Mortgage Insurance. There is the middle of the road...Call me to discuss the details and get you into your New Home in time for the Summer ! I fear that you'll continue to be in the same predicament as the market recovers, for the increase value of your home means a higher purchase price...

Call me for a sensible approach.

Most Kindest Regards,
Mario Gonzalez
email: MariogRealty@gmail.com
JD Power & Associates Ranked #1 Buyer Satisfaction 2008, 2009, 2010
Chase Bank Preferred Agent 2008, 2009, 2010, 2011
Short Sale & Pre-Foreclosure Certified *
REO Buyer Agent & Distressed Property Certified
DRE LIC 01708214
0 votes Thank Flag Link Tue Apr 10, 2012
Yes 20% is the amount to avoid PMI, but there maybe exceptions based on credit and debt to income ratio. Feel free to contact our loan broker Sheila (949) 922-9244.
0 votes Thank Flag Link Tue Apr 10, 2012
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