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Do 80/20 loans still exist? I have an 832 credit score. Any other options to avoid PMI in Texas?

by harris_387 from Arlington, Texas. Aug 2nd 2011 Reply


Kevin Reid (kevin@nflploans.com)
#83 ranked lender in Texas - 1 contribution

It is difficult to obtain any type of 100% financing outside of USDA or VA loans. Standard conventional financing you are looking at minimum down payment of 3-5%. You can avoid mortgage insurance with these programs and a small second loan. For example, you could qualify for a 80/15/5 where you put only 5% down. Feel free to call or email me if you would like more answers to your questions. Kevin Reid - www.kevinloans.com - kevin@nflploans.com - 713-568-4478

Aug 2nd 2011
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Craig S. Spaulding (togabroker2@yahoo.com)
#54 ranked lender in New York - 18 contributions

That is an excellent question. 80/20 loans are all but extinct to my knowledge, however there are other options out there to avoid paying PMI. There is something that is called LPMI which is lender paid mortgage insurance. It is available on certain loan scenarios but would require you taking a little higher interest rate. Please don't hesitate to give me a call if you need any more information or have other questions.

Aug 2nd 2011
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Richard Woodward (RichardWoodward)
#39 ranked lender in Texas - 106 contributions

I agree with all the respnses so far and tell you that 80/20 loans are gone. If you are looking for 100% financing you are going to be limited to USDA or VA loans. If you are looking to avoid monthly MI, then I too would suggest single premium mortgage insurance. I offer this type of financing to my client instead of first and second financing because if you intend to stay in the home from more that 3-5 years it will save you money. I even have MI discounts for highly qualifed buyers like yourself. You are welcome to contact me for a quote at 972-661-5135 or www.envoy-mtg.com

Aug 8th 2011
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Brad Cahoone (info@globalhomefinance.com)
#89 ranked lender in Texas - 1,042 contributions

Harris, Good afternoon. LPMI (Lender Paid Mortgage Insurance) which the lender just charges a slightly higher rate to buyout the PMI. Then there are the split premium and upfront mortgage insurance options. The 80/15/5 mortgage option would give you a first mortgage for 80% of the value of the home, a second for 15% and you would put 5% down ot of your pocket. USDA and VA do allow 100% financing without MI. The VA guarantees loans with a veterans entitlement but there is a funding fee for that program unless you are a disabled vet. Always feel free to contact me with any other questions. 972-724-3222 ext 227Cheers - Brad - bcahoone@globalhomefinance.com - Saving Texas One Home Owner At A Time!!! - http://globalhomefinance.com

Aug 12th 2011
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