Do any banks allow you to put down less than 20% and avoid PMI?
Buying a home.
My bank agent said we could put down 10% without any issues and still avoid PMI.
Is he overworked or what?
What is an 80-10-10 deal to help avoid PMI????????????
- falsi fiableLv 710 years agoBest Answer
No. PMI is required by Freddie Mac and Fannie Mae whenever you put down less than 20%. Some lenders can structure 80-10-10 deals to help avoid PMI. Ask your lender or broker for details.
Some of these deals rely on you committing mortgage fraud because you lie to the 80% first mortgage company by stating you put down 20% when you really took out another loan for the other 10%. Some deals are legitimate. Ask your lender to explain the difference.
- philospher77Lv 610 years ago
They've tightened up on this a lot, but yes, some will probably still do a second loan to cover part of the 20% and avoid the PMI. Be aware that that second loan will be an adjustable rate, and that it can go up fast. I did my first house purchase with an 80/15/5 loan (I put down 5 %, got a fixed-rate mortgage for 80%, and had a 5% second mortgage). The second mortgage started off at 4% and was at 8.25% 4 years later, so this can become an issue if you are barely able to make the payments to start with.
- HeatherLv 710 years ago
I don't know what an 80-10-10 is, but I think it's where you put down 10%, have one mortgage for 80% and another for 10%. Not sure if this will avoid PMI but talk with your loan officer.
Otherwise, you will need 20% or pay PMI.
- Anonymous10 years ago
Yes ,I also want to know ,anyone can help?