Question about PMI
I was wondering if a lender can still charge PMI even if the borrower already has 20% equity in the house upon purchase? I am new to home buying and I want to know how I can do away with paying PMI. by mcrawfor620 from Portland, Oregon. Jan 13th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
The general rule is on your standard conventional loan, as long as you put at least 20% down payment, you do not need private mortgage insurance. FHA loans require mortgage insurance regardless of the down payment, and VA loans have no mortgage insurance ever. Even when you put less than 20% down, there is a gigantic amount of misinformation on PMI, its cost, when it goes away, and the benefit of having it versus stretching to make a 20% down payment, if 20% is a burden. I lend for properties in MN WI IA ND SD. Find me at Mortgage-Duluth.com - Cambria Mortgage, NMSL 274132
Lorne Harvey (lorneharvey)
#77 ranked lender in Washington - 439 contributions
You probably being offered an FHA loan, or maybe a USDA loan, under your circumstances there would be no PMI on a conventional loan with 20% down.
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