Home Buying in 94578>Question Details

amyvu99, Home Buyer in Sunnyvale, CA

my credit score 735, home price $500,000. down payment 1/3 but income is only $3500 month. My Mom cosigns.her score is 745 income $ 500,000/y

Asked by amyvu99, Sunnyvale, CA Wed Feb 13, 2013

how to avoid PMI from FHA loan

Help the community by answering this question:


You can just to a conventional loan with a non-occupant co-borrower. No problem. Don't do FHA unless you have to because of the high mortgage insurance.
0 votes Thank Flag Link Thu Mar 14, 2013
There are many programs you can apply for a loan, and see if you can avoid a PMI, (as you know it is a mortgage insurance apply to the loan until you pay the 20% of the loan)

I know a direct lender who will help to get the loan that meet your criteria with low interest rate, if you are looking for Homes in San Lorenzo, Ca. I have so many listings to assist you to find the perfect for you.
0 votes Thank Flag Link Thu Mar 14, 2013
You have lots of choices. Please get in touch with good Loan Broker and help yourself.

Jasbir Gujral
Loan Broker
0 votes Thank Flag Link Tue Feb 19, 2013
Unfortunatley, Mortgage Insurance on an FHA loan is mandatory, for a minimum of 5 years. Every FHA loan requires mortgage insurnce, no matter the credit score or downpayment.

I am assuming that you are going with FHA financing because you need to, meaning that you cannot qualify with conventional financing. There are several areas where FHA is more lenient. For example, you can buy with a foreclosure that is only 3 years in your past with FHA, yet the waiting period for conventional is 7 years. The reason FHA requires mortgage insurance is because they tend to be more lenient. It protects them.

If you can go conventional financing, do that, as you will not have to pay mortgage insurance with 33% down.

If you have questions, feel free to contact me. Otherwise, good luck with your home purchase!
Julie Thall
0 votes Thank Flag Link Wed Feb 13, 2013
Why do you need an FHA loan if you have 1/3 as a down payment, 735 Fico score? What are your and your Mom's overall debt-to-income ratios?

You should be just fine with a Freddie Mac conventional loan.

Do not hesitate to give me a call to further discuss


Thierry Abel
Senior Loan Consultant
All California Mortgage
A Division of APMC
P: (415) 464-8261
C: (415) 378-7508
F: (415) 464-2367
E: tabel@allcalifornia.com
NMLS 304353 - DRE 01380701
0 votes Thank Flag Link Wed Feb 13, 2013
Sounds like you have a fabulous chance to buy. Since you posted your question in San Leandro zip code --- is this where you are looking?

A new listing just came up for $474,950, in addition to current listings at $499K amd $499,950.

Like other Bay area cities, we are seeing a resurgence of buyers competing for the few houses that come up for sale.

So you should go ahead and speak to your mortgage lender right away to know your options -- what you can afford, what kind of loan you can get and at what interest rate, what is required for your mom to co-sign, and how much you will need for down payment and closing costs.

Because once you see a property you like, it won't take long before it will be in contract.

I have a short sale listing for $430K, and I am receiving multiple offers at significantly over the list price.

So be prepared to act fast, and to compete in this market.

Let me know how I may help you

Pacita Dimacali
510 205 2992 (text, too)

Good luck!
0 votes Thank Flag Link Wed Feb 13, 2013
Hello Amy,

You have good answers already from the mortgage brokers.
I just wanted to let you know that I just got a new listing in 94578 zip code in San Leandro yesterday.It is listed for $474,950.

To see a virtual Tour on this listing click on the link:

It will also be open this Sunday from 1-4 PM.

Meena Gujral
Achievers Realty
0 votes Thank Flag Link Wed Feb 13, 2013

I have a portfolio loan product available on a 30 year fix or 15 year fix where you can go as little as 5% down and there is no PMI on the loan. The catch is that you have to qualify by making sure you do not exceed the income limit for the county you are buying in or the property itself is approved in a census tract allowed by the lender.

If I can be of assistance, please let me know.

Michael Abram
RPM | Los Angeles
Direct: (310) 574-7766
Cell: (310) 995-0975
0 votes Thank Flag Link Wed Feb 13, 2013
Amy Vu,

On an FHA loan, to avoid having to pay the annual/monthly MIP (it's called "MIP", for "Mortgage Insurance Premium", on FHA loans because they are self-insured,and "PMI" means "Private Mortgage Insurance") you'll need to put at least 22% down and take a 15-year term or less. However starting on June 3rd 2013 even with those parameters FHA will start charging annual MIP in the amount of .45% of the loan amount per year (i.e. on a $330k loan amount it'd equate to $123.75/mo).

However did you know that you can use conventional financing and your mom can so-sign and be able to use her income to qualify? There are two primary forms of conventional financing - Fannie Mae & Freddie Mac. Fannie Mae programs WON'T allow an occupant borrower & non-occupant co-borrower to combine their income to qualify however Freddie Mac loan programs will. Since you & your mom both have excellent credit, then I strongly recommend you look into using a Freddie Mac loan program to purchase rather than FHA financing as it'll save you more money.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Wed Feb 13, 2013
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