It is true 20% is required on a home purchase regardless if it is FHA or conventional or else PMI will apply for the life of the loan?

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

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Harold Sharpe’s answer
Harold Sharpe, Agent, Lake Havasu City, AZ
Wed Feb 19, 2014
No it is not true. 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
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The A Team, Agent, Lake Havasu City, AZ
Mon Feb 17, 2014
A 20% down payment is required on a conventional loan to avoid PMI, (private mortgage insurance). Once you reach a 20% equity position in the home, a person can ask to have the PMI removed from the payment, (typically as long as they have paid on the PMI for a minimum of 2 years and have not been late with their payment for the most recent 12 months).

On an FHA loan, regardless of the down payment, mortgage insurance is required and on all new FHA loans, mortgage insurance is required for the entire length of the mortgage, regardless of the equity position.

Hope this helps. Please call me at 928-486-9946 and I will send you Lender information for Lake Havasu City, AZ
0 votes
Samantha Ten…, Agent, Boca Raton, FL
Sun Feb 16, 2014
The best thing to do is to speak to a mortage broker or Banker on what the programs are and what is needed . So you have the most accurate information . It is always better to have the right information . If you have any questions . Feel Free to reach out to me .

Samantha Tenzer Friedman
Em: Samantha Tenzer
Cell 786 314 6100
0 votes
Ro Beets, Agent, Lake Havasu City, AZ
Sun Feb 16, 2014
Not all loan programs will require the 20% down or the PMI insurance. Most loan programs have the PMI go away ( you may have to request it be reviewed and go through a process to confirm that you have now reached 20% equity level in the home) . There are a couple of loans that require neither the 20% down or the PMI. What type of employment do you have? There is one bank that offers special loan programs to teachers, another loan program for medical doctors, another loan program for first responders--- police, fire, paramedic etc. If you want to contact me , I'll be glad to provide you a contact to discuss these types of loans and see if they might offer a program that might fit your needs without 20% down or PMI

Over 15 years of selling Lake Havasu and decades more of real estate investment experience that goes to work for You !!
Ro Beets/Selman Real Estate
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Kristy Bican, Agent, Eden Prairie, MN
Sun Feb 16, 2014
No, it's not. Once you pay the balance down to a 78% loan-to-value ratio you can request to stop paying PMI. Check out the following link for more information:…
There are certain loan programs that do waive this requirement as well.
0 votes
Dan Tabit, Agent, Issaquah, WA
Sun Feb 16, 2014
My understanding is the only FHA will require the PMI to stay for the life of the loan. If you go conventional I believe you can remove it when you reach 75% loan to value.
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