Is it true that 20% is required on a home purchase to avoid PMI for the life of the loan?

Asked by Marta, Lake Havasu City, AZ Sun Feb 16, 2014

We want to purchase a home, however 20% a price high amount.

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Lisa Markham, Agent, Tucson, AZ
Mon Apr 14, 2014
Hi Marta,

Actually, you can put less the 20% down and not have mortgage insurance for the life of the loan. However, with anything less than 20% down, you will have mortgage insurance initially.

FHA just revised their guidelines, forcing you to have mortgage insurance for the life of the loan. Conventional loans however, there are a few different options, i.e., monthly premiums, single premiums, split premiums; depending on if the mortgage insurance is borrower paid or lender paid.

Call me and I can explain this better for you or I can send you some information via email.

Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
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Harold Sharpe, Agent, Lake Havasu City, AZ
Thu Feb 20, 2014
No it is not true. There are some loans out there that this is not the case. You just have to find a lender who does them. There are several ways and each way may save you some money. on average around 50 - 100 per month on loans around 250-300k. Contact a Lender, Usually a Mortgage Broker, and ask the question first hand. You can go to for a few of the top lenders in town.

Harold Sharpe
Lake Havasu Homes
(928) 846-4555
0 votes
Kirsten Well…, Agent, Atlanta, GA
Sun Feb 16, 2014
No. While FHA loans typically have pmi for the life of the loan conventional products can be removed after an amount of time has passed & the loan has been paid down. Also look into loans with imputed MI as well as 1st & 2nd combos to avoid pmi
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