As you can see from my colleagues' answers you do have options to purchase a home with 5% down (or even less if you can get FHA loan approval). And I agree with them that building a relationship with a local mortgage broker is critical to your success.
I'm a transplant to Boston (from Atlanta) and I now specialize in working with relocation clients. Many of my clients have been tremendously happy with the service they've received from Wells Fargo Home Mortgage. I would urge you to contact my friend and business colleague Cory Miller by phone at (617) 447-0103 or via email at firstname.lastname@example.org.
If you'd like to engage my services as a Buyer's Agent for your long-distance home search, please feel free to contact me through my website at http://www.GoHomeWithMichael.com where you can register to receive free property listings or you can simply email me directly at email@example.com.
Good luck with your home search.
If you can get a seller credit for closing costs, that credit could go towards the cost of the MI and keep the rate lower.
The short answer is yes. But I notice you are from IL and one of the criteria would be you would have to live in the property. I have had great success working with a guy by the name of Yauvan Kumar of Mortgage Masters. He works out of their South End office. Here's his contact info. My contact info is below his if you need anything else Good luck
South End Massachusetts Office
671 Tremont Street, Ste. 1
Boston, MA 02118
Jessie Cuddy, Realtor
Boston Bayside Properties
2253a Dorchester Avenue
Dorchester, MA 02124
cell: 617 875 7004
The most important criterion here is to find a property that is 5% down payment approved by lenders, or FHA approved. NOT all properties qualify.
Once you do:
You have a few options, but please pay attention to what you will be saving by not paying PMI and what you may be paying to avoid it. it can be tricky. Be very diligent here please.
*Option 1: get a second mortgage. This 80/20 option will help you avoid PMI, but the 2nd mortgage interest rate can be very high and costly.
*Option 2: Pay it up front and include it into the loan. with the low rates that we have and your good score, this can be a good option.
*Option 3: free after five. This option allows you to avoid PMI altogether after 5 years of excellent payments, provided that you are a good payment history with your lender.
*Option 3: LPMI: Lender Paid Mortgage Insurance. Lender may pay MPI for a small adjustment to the interest rate.
Please check with a qualified mortgage broker to see which option is best for you.
Please visit our website (link below) for available properties for sale in the Boston area. It is a free service. Should you require our services, please feel free to contact me directly.