Conventional with 5% down and no PMI?

[Anonymous]

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?

[Anonymous]

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

[Shooting-For-800]

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

Just compare apr to other lenders.

[Anonymous]

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/

[Anonymous]

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@Anonymous 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/

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

[Shooting-For-800]

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

[Anonymous]

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.

[Shooting-For-800]

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

[Anonymous]

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?

[Revelate]

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@Anonymous 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?

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