Home Buying in Raleigh>Question Details

Joe, Home Buyer in 27612

3 percent down with no PMI? Is this possible?

Asked by Joe, 27612 Sun Dec 2, 2012

Wondering what kind of options are out there for low down payment / no PMI loans for non first time homebuyers in the Raleigh area.

Help the community by answering this question:


BB&T Bank also has a first time homebuyer loan with no mortgage insurance. The interest rate is a little bit higher but the net result is still considerably less per month then it would be paying mortgage insurance. I believe the program is called the CHIP program. Give me a call at 919-961-5487 if you have any additional questions. I am happy to answer them for you.
0 votes Thank Flag Link Thu Dec 6, 2012
Actually this is possible through NC housing and if the property is located within a USDA elible area.

Jim Allen Group
Coldwell Banker HPW
0 votes Thank Flag Link Tue Dec 4, 2012
Think PNC bank has this type of loan.
0 votes Thank Flag Link Sun Dec 2, 2012
yes...if you have a VA Loan and are eligible.

no...the risk of default and foreclosure must be mitigated.

yes....if you have LPMI (Lender Paid MI) and accept a higher interest rate that has the MI built into the rate forever.

USDA RD loans have a .4% monthly fee that is assesed in conjunction with its RD fee to insure against the risk of default. While it may not be called MI it works as such. Property and income must be eligible. The USDA website is below...

0 votes Thank Flag Link Sun Dec 2, 2012
My understanding is that both USDA and VA loans have no PMI and both of these have 100% Financing. Both though have restrictions in that VA loans, unless assumed, are only availble for current and ex military. USDA homes are typically more rural and addresses have to be checked in their website for eligibility. I just completed listing a home this morning in Wendell that is USDA compliant. I would strongly suggest contacting a qualified lender personally with this question if an answer is needed quickly. May I recommend Natalya Hill at 919-614-0388 . I've been working almost exclusively with her since 1994 and she has never failed to get a loan through that she said would work. Also, if looking at homes, please feel free to use the search engine on my website at http://www.RaleighHomeSite.com.
0 votes Thank Flag Link Sun Dec 2, 2012
I have not found a lender who will lend with not PMI with less than 20 % down payment.
The risk of default goes higher with low down payment loans. The bank has to be sure someone will pay if this happens.
If tou find an institution doing it I would like to have their information.
0 votes Thank Flag Link Sun Dec 2, 2012
It is possible with USDA and with NC Housing, depending on the location.
0 votes Thank Flag Link Sun Dec 2, 2012
It just depends best to speak with a few lenders, I will be happy to recomend for you.
I have a buyer on new construction with a 3.5% down payment and no pmi closing this month, but keep in mind usually there are other ways for the lender to make money, ie slightly higher fees and or interest rates. Local banks sometimes have very unique programs depending on the area, and or occupation etc.
0 votes Thank Flag Link Sun Dec 2, 2012
No. Any time there is a small down payment, there is mortgage insurance in there somewhere. Even if the lender does not have you directly pay for mortgage insurnace, the lender will get the mortgage insurance and include it in the price of the financing. Without the insurance, the risk is too high, as there is an a much higher rate of default on low down payment financing. If you need an agent who will always "tell it like it is" see http://www.TeamForYOUrDreams.com
0 votes Thank Flag Link Sun Dec 2, 2012

I've not heard of any loans that aren't going to require PMI with so little down, other than through State Employees Credit Union which if you have access to using would be who I would suggest speaking with. Even they may require some sort of PMI.

Good luck, I'll be interested in seeing what some local lenders have to say in their response. Might be I'll learn something new and useful.
0 votes Thank Flag Link Sun Dec 2, 2012
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