No PMI Mortgage Options?

[Anonymous]

I was approved for $450k with 3% down but PMI is around $350/mo. Any other options out there to remove PMI other than the obvious put 20% down which I do not have? I've found some but there's usually a limit of income or loan amount.

Thanks

non military

690

$9500/mo salary, $1200/mo debt

have to go fannie mae due to ibr on student loan

[NC_Mtg_Loaner]

That's just it......

there are no competitive loan program options for NO MI w/out 20 % down unless you find that rate being offered includes the PMI in the loan rate--aka LPMI where the lender pays it for you or if you pay it in a single premium or a split premium---either way my advice would be to either save another 2% so you can obtain a more affordable MI rate or just be super diligent to pay extra principle early and often so you can remove it down the road once your equity stake reaches 78%.

[Anonymous]

I am in a similar situation we decided to go with Conventional 30 yr on a 450k house with 5% down. PMI is less at 270. We realized that if we can pay ahead we can get the PMI removed. The LPMI will be on the interest for the life of the loan. You could refinance but interest rates are expected to rise moving forward.

[800scoreplease]

There are no other options that I know of without 20% down. You can always refinance when you have 20% equity in. We just reached 20% equity but the conventional interest rates are much higher than our current 3.8 FHA loan so we are waiting for rates to drop to refinance.

[Anonymous]

I'm getting ready to start my house hunting process. My local credit uinion has a 100% financing no PMI program. Must be a resident of NC, SC, TN, VA or GA. 

NCSECU - North Carolina State Employees Credit Union.

Only drawback is it's a 5/5 ARM. Will have to refiance in 5 years if the interest rates dont look favorable.

Not sure where you're located but letting you know just in case it's a option.

Edit: Also, NCSECU goes by the student loan payment on the credit report, even if it's 0. Thats my situation.

[Anonymous]

Thanks. I'm in NC but I'm not (nor anyone in my family) a state employee.

Thanks though

[Anonymous]

NCSECU is really lax about verification. I know friends who got other friends in by claiming them as family. 

[Anonymous]

ok......now i'm interested

Do you know what their down payment options are?

[Anonymous]

oops.....just saw where it's 100% if first time which we are

[Anonymous]

What’s the rate? I can almost guarantee the PMI is added into that. Also I would think a lot before getting into an ARM in a rising rate environment vs locking in a relatively low rate now. OP can you come up with a little more down payment? It will save you in the long run.