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Can you put less than 20% down on a traditional 30 year fixed mortgage?

I'm currently renting and will buy this year - I'm going to try and extend my lease six months and buy in the fall. Assuming my landlord is ok with that, I'll have less than 20% down but a great FICO score and should get the best rate. I know the FHA PMI went up. So my question is - can you put less than 20% down on a traditional 30 year fixed mortgage, and should I do that if possible since the FHA insurance is higher? I'd love to put 20% down but I'm using the extra time to pay off a credit card (I hope) and build up an emergency fund. by pattyr_130_274 from Pawtucket, Rhode Island. Feb 27th 2012 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,960 contributions

Needing 20% down is a myth! There are many conventional loan options with less than 20% down for most people. Almost everyday I provide great credit customers like yourself 5% down options that significantly beat other low down options like FHA. Click on my name to the left, then check my blog for a large article on less than 20% down options. Contact a local non-bank licensed mortgage expert for details.

Feb 28th 2012
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Robert Oliveira (roberto)
#13 ranked lender in Massachusetts - 89 contributions

Hi Patty, Yes you can put down less than 20% but you will have PMI and the PMI will be based on your credit score and total debt to income levels and the total loan to value. Now you can also do a lump sum buyout of the PMI and that will vary in cost based on your credit score and total loan to value and total debt to income levels. So if score below 680 that could be very costly. call me or email to discuss options and such. Thank you Robert Oliveira Residential Mortgage Services at 508 802 0935 and email is roliveira@rmsmortgage.com

Feb 27th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

There are options available where you can put less than 20% down, and not pay monthly mortgage insurance. Contact a local mortgage broker, not a bank, and apply with them.. They can show you the difference from borrower paid up front mortgage insurance, and lender paid mortgage insurance.. There is also HomePath homes which have zero mortgage insurance, and VA also has no monthly mortgage insurance... WilliamAcres.com

Feb 27th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

you can go to 95% on a purchase conventional....

Feb 27th 2012
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Lori McMahon (ljprops)
#8 ranked lender in Wisconsin - 3 contributions

Hello Patty,I agree with the previous answers but I "would" also check with local banks and credit unions. If they do the actual loan themselves, the interest rate may be a bit higher but you might find one willing to take a smaller down payment with no PMI. I just obtained a mortgage loan myself with 10% down but I had to shop around extensively to find this.Good luck!J.R.

Feb 27th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

There are many options available for you to obtain a loan with less than 20% down, with or without monthly PMI. In some cases, depending on your overall package, monthly PMI is negligible, or nonexistent. However, before you decide to wait until you think you might be ready, I advise you to seek out a local Mortgage Banker/Broker to help you determine all of the options available to you today. They can also help advise you on the issue of paying of the credit card vs 20% down, and much more. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Feb 27th 2012
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