With less than 20% down you can't eliminate PMI altogether, however if you have good credit scores we have options to greatly reduce your payments. FHA has become more costly in both up-front mortgage insurance AND monthly mortgage insurance (and it is going up again April 1st). So I would recommend going conventional if you can. It could save you thousands of dollars over the life of the loan.
On a conventional loan you can pay PMI monthly, entirely up front (we'll let you finance it into the loan amount if you like), or the lender can pay your PMI in exchange for a higher rate.
As an example, on a $260,000 home with 10% down payment and a 700 FICO score, your principal, interest, and PMI payments on the following loans could look something like this:
FHA - $1287/month
Conventional with monthly PMI - $1207/month
Conventional with PMI paid up-front - $1109/month
These are for illustrative purposes only, but if you'd like to go over specifics please feel free to email me and we can go over the finer points.
I pulled some home inventory for you to view in the general Bel Air area based on the price range that you specified - these are all single family homes. Lots to choose from! Click or copy & paste the link below to view:
Once you get your financing structure squared away, give me a call and I would be happy to take you out to view some inventory - my office is right in Bel Air. You stand to get a great deal on your first-time purchase!
USDA Mortgage Hub
100% USDA Rural Housing Loans
Serving all 50 states
Ph: 800-691-8826 (7 days a week)
If not, then USDA has no PMI. The United States Department of Agriculture has started insuring loans with 0% down payment and no month. MI.
Shoot me an email at email@example.com to learn more.
I'd recommend you speak with a good local lender. We use and have had great service from Pete O'Donnel at First Home Mortgage. A link to his site is attached. With all the mortgage defaults it is going to be hard to avoid PMI. However I believe only FHA is increasing PMI rates in May. Have your individual qualifications reviewed by a local pro and you'll get the best advice!
NMLS # 6395
Financing Kentucky One Home at a Time
Call or text me at 503-810-1119 and we can discuss further how to assist you.
Paul W. Thompson
Call me if you have any questions at 410-960-3272. Have a great day.
There are other conventional loan options available that require less than a 20% down payment - it all depends on your credit rating, financial disposition, home price and other factors. There are also other loan options other than FHA that require a minimal down payment, and in some cases no down payment (100% financing). You are correct that the fees and financing structure associated with an FHA loan will very soon be changing, and not for the better.
You best option is to speak with a qualified mortgage professional who can help guide you to the best loan scenario that will fit your needs and budget. Feel free to contact me and I can put you in touch with a loan officer who can help you with this first step.
Mark Parker, ABR/GRI
If you'd like more information or to speak with a mortgage professional who can help guide you through your potential options, please let me know. I work with a few who can help you determine what may be best for you based on your situation!
Keller Williams Excellence Realty