Hello everyone! So glad this place exists for folks like me to learn from you. ✨ looking for ideas on to how to acquire an owner-occupied property with 5% down by using a mortgage loan product to purchase , improve and avoid mortgage insurance based on projected value?
Any advice on the type of loan? Or strategy is much appreciated.
Real Estate Agent · Tooele, Salt Lake City UT · Member since 2020 · 136 posts · 54 votes
1y
For an owner-occupied property with 5% down, consider a conventional loan with a renovation option like Fannie Mae or Freddie Mac. CHOICERenovation loan. These allow you to bundle renovation costs, and if the post-renovation value meets 20% equity, you may be able to avoid PMI. Another approach could be to use LPMI, which rolls PMI into a slightly higher interest rate, potentially saving you monthly PMI payments.