Question Details

Charlie, Home Buyer in Columbus, OH

How do I avoid MI?

Asked by Charlie, Columbus, OH Tue Apr 22, 2008

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Hi Charlie - Depending on your credit scores and overall credit profile, there are some blended products still remaining in the market that would allow you to avoid MI with as little as 5% down. These products are called 80/15/5 or 80/10/10. They consist of an 80% first lien and then either the 15% 2nd lien with a 5% down payment or a 10% 2nd lien with a 10% down payment act as the 20% down requirement necessary to avoid paying MI. These are conventional loan products and they are very credit score driven and subject to meeting both 1st and 2nd lien underwriting requirements. The interest on both the first lien and second lien is tax deductible. MI is also tax deductibel due to recent changes with the IRS, however, there are parameters on income you must meet in order to get the deduction of MI on your federal returns. If I can be of any assistance or help you determine if you would qualify for one of these programs, please feel free to contact me at 817-807-5367 or you may pre-qualify for free on-line at


Katie Sparkman
Sr. Loan Officer
Cornerstone Mortgage Company
972-238-7400, ext. 104
0 votes Thank Flag Link Tue Apr 22, 2008
Seller Financing, VA financing, second morgage to offset 20% down, rent or just put 20% + closing costs down
0 votes Thank Flag Link Tue Apr 22, 2008
You can avoid MI or PMI by putting 20% down. Also, there are a few banks that are running special deals right now where you can avoid MI by putting only 5% down- this is typically unheard of. If you are interested in the specific bank that I have actually used this program with let me know. Hope the info helps & good luck to you!
0 votes Thank Flag Link Tue Apr 22, 2008
You are only charged MI or PMI (Mortgage Insurance also known as Private Mortgage Insurance) on your first note. If that first note is at 80% or less of the LTV (Loan to Value) you will not have MI or PMI. Hope this helps
0 votes Thank Flag Link Tue Apr 22, 2008
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