Understanding PMI Options

[courtney091082]

Ok I'm now thinking we want to go conventional. 5% down and maybe do an upfront PMI.

I can have the seller pay that right? If I ask for 6% from the sellers that can go towards my closing costs and upfront PMI, and any additional fees other than my down payment.

I'm trying to kinda figure it up, how much % wise is the upfront PMI in general?

I'm thinking our closing costs will be about 4% and 2% or so for upfront MI...that would be the 6% from the sellers if all goes well?

Most likely our loan will be 150-165k after our dp. And I'm in Texas.

Thanks for help anyone  

[Anonymous]

From what I understand Yes, the seller can pay for the PMI at closing as long as they cover the entire thing, not a portion of it.  I'm not sure of the technicalities, but the short of it is yes they can pay it

[courtney091082]

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@Anonymous wrote:

From what I understand Yes, the seller can pay for the PMI at closing as long as they cover the entire thing, not a portion of it.  I'm not sure of the technicalities, but the short of it is yes they can pay it

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Now that you say that I think I remember reading that somewhere

Anyone have an idea on the % of the loan that the upfront PMI cost would be...I'm in Texas....??

[Anonymous]

I believe if you choose to pay it upfront, its 2.2% of the loan

[courtney091082]

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@Anonymous wrote:

I believe if you choose to pay it upfront, its 2.2% of the loan

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I can handle that thanks!!! Way better than making that payment for 5 yrs with my mortgage!!  

[tooleman694]

I thought conventional only allowed 3 percent from the seller. FHA allows 6 percent.

Im buying a home here in Texas, roughly 300k and up front PMI is 6k. So about 2 percent.

[courtney091082]

You might be right, I was going to go FHA all this time and recently finding out my scores are in the 700s figured Conventional might be the way to go. 3% ugh I wish it was 6% that would help me much more 

[tooleman694]

Then go conventional with 3 percent down and use that other 2 percent for PMI.

[courtney091082]

Wow! I didn't realize you could do conventional with less than 5% down. That is surely a thought!!