The 80-10-10 option is no longer available.
If your intention is to avoid PMI
â€¢ You can get a 90-10
â€¢ PMI amount is absorbed in the interest rate.
â€¢ PMI is not tax deductible
â€¢ Slightly higher interest % paid to avoid MI, is tax deductible.
â€¢ If your score is good you should be able to qualify for the lender paid MI, depending on the rest of the
â€¢ Just to let you know, in todayâ€™s market lenders are concern about the condition of the property when PMI
underwrites the loan. I.e. if you are buying a REO, a bank owned property that needs work that
unacceptable to your lender, you may face some issues to close that escrow.
If your intention is to payoff the other 10% after some time and just keep the 80% loan
â€¢ You may want to get a 90-10 loan now that doesnâ€™t have any prepayment penalty.
â€¢ Remember and try not to pay any non-recurring closing costs. Let that be absorbed in the interest rate
or you can negotiate an entire NRCC- non recurring closing cost paid for by sellers.
â€¢ When you refinance the 80% loan you donâ€™t pay that closing cost cash twice.
Jay, I negotiate Real Estate deals for my clients and help them connect with lenders I have experience with. If you wish to discuss more or are in need of an expert experience Real Estate Broker feels free to contact me at no obligation.
Good luck to you,