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Conventional with 5% down and no PMI?

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Regular Contributor

Conventional with 5% down and no PMI?

I was told by a lender I'm speaking with that they have a first time homebuyers program where I put 5% down and there is no PMI. I asked him so you will increase my interest a little bit then to cover for the no PMI? He said no because they will keep the loan (portfolio) and not sell my loan to any secondary places hence no PMI is needed. I never heard of such a thing. Does this sound legit?

Message 1 of 10
9 REPLIES 9
Regular Contributor

Re: Conventional with 5% down and no PMI?

He also said that I need a middle 700 score for this. I am at 695 right now.

Message 2 of 10
Valued Contributor

Re: Conventional with 5% down and no PMI?

I have seen credit unions offer no pmi with fixed interest and low down payment.

 

Just compare apr to other lenders.

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $250k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

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Message 3 of 10
New Contributor

Re: Conventional with 5% down and no PMI?

The program could be legit but there are usually income restrictions. You usually have to make less than the median income for your area.

 

BOA has a similar program: https://www.bankofamerica.com/mortgage/affordable-loan-solution-mortgage/

 

Message 4 of 10
Valued Contributor

Re: Conventional with 5% down and no PMI?


@homebuyer360 wrote:

The program could be legit but there are usually income restrictions. You usually have to make less than the median income for your area.

 

BOA has a similar program: https://www.bankofamerica.com/mortgage/affordable-loan-solution-mortgage/

 


Thanks for posting that link! I was wondering if anyone had info about his question. 

Message 5 of 10
Valued Contributor

Re: Conventional with 5% down and no PMI?

https://www.navyfederal.org/loans-cards/mortgage/mortgage-rates/fixed-rate-mortgages.php

 

Navy Federal

No PMI

5% down

 

15 year

3.375%

.5 points

3.595% apr

 

30 year

3.875%

.75 points

4.021% apr

 

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $250k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

10% Rotating - Discover                    5%-20% - Amazon & Lowes                3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl         4% Dining & Entertain - Savor            3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver





    
Message 6 of 10
Regular Contributor

Re: Conventional with 5% down and no PMI?

Thanks for the responses everyone. At least I know now it's not just some fairytale story I was told. My income is 46,000 so I'll have to see if I qualify or not etc. I'll ask him some more questions come Monday. And this is through Home Savings Bank.

Message 7 of 10
Valued Contributor

Re: Conventional with 5% down and no PMI?

Well jot down the Navy numbers so you have something to compare it to.

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $250k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

10% Rotating - Discover                    5%-20% - Amazon & Lowes                3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl         4% Dining & Entertain - Savor            3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver





    
Message 8 of 10
Regular Contributor

Re: Conventional with 5% down and no PMI?

I'l do that. I can't get into Navy though but I'll keep that a secret if their numbers are higher which I'm sure they will be. Do lenders "price match" like retail stores do?

Message 9 of 10
Moderator Emeritus

Re: Conventional with 5% down and no PMI?


@joesef wrote:

I'l do that. I can't get into Navy though but I'll keep that a secret if their numbers are higher which I'm sure they will be. Do lenders "price match" like retail stores do?


Typically no, portfolio lender which yours sounds like, maybe.  




        
Message 10 of 10
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