Loans with NO Mortgage Insurance
Private Mortgage Insurance (PMI) is typically required when a potential homebuyer has less than 20% down payment on the home being purchased. Mortgage insurance is not tax deductible and can only be removed by creating 20% equity in your home (through home value increase and/or mortgage balance reduction). Below are a few examples of home financing programs that do NOT require mortgage insurance, even though financing is above 80% of the home’s value.
Homepath 95 Program is a mortgage program for people looking to purchase a new home. This program allots for the prospective buyer to put as little as 5% down on a home purchase, without incurring any monthly mortgage insurance Loan amounts are available up to $417,000. Borrowers must have a minimum 680 credit score to obtain financing.
The High Balance no mortgage insurance program allots for a homebuyer to finance a mortgage with greater loan size thresholds than the above program. For this program, the homebuyer must have 10% down payment to qualify. However, the maximum mortgage loan size available is up to $900,000. Borrowers must have a minimum 720 credit score to obtain financing.
Subsequently, there is a program that also allots for no PMI up to $1,500,000 loan amount with only 15% down.