Does PMI exist for rental properties???

Question

Can you get PMI insurance for a rental property?? Meaning - are there any banks out there that will do 90% LTV and the borrower is responsible to pay for PMI?

Chris Mason · Answer

Ya, once in a blue moon someone cares more about minimal down or CoC ROI than they do about finance charges, and we will do an 85% LTV SFR investment property. Flippers often do this when they stumble upon a house juuuuuuuuuuust good enough for traditional financing. IE: The kitchen is utterly gross and 65 years old, but technically it is a complete & functional kitchen with no glaring health/safety hazards, etc... "granny homes." Grandpa died 15 years ago, Grandma has been doing bare/below minimum maintenance since then because that stuff was always Grandpa's job.

Or someone doing buy-and-hold but they need to keep the 5% in their pocket to upgrade some things.

Either way though, the house sells or is shortly thereafter refinanced, so it's more "purchase" financing to get you in the door that's better than hard money, and not so much "permanent" financing.

Or someone doing buy-and-hold but they need to keep the 5% in their pocket to upgrade some things.

Either way though, the house sells or is shortly thereafter refinanced, so it's more "purchase" financing to get you in the door that's better than hard money, and not so much "permanent" financing.

Scott Graham · Answer

@Jerry Padilla Great advice! I will be sure to ask!

Jerry Padilla · Answer

@Scott Graham

Conventional requires an 85% LTV for an investor, so you won't find less than that. Maybe a portfolio lender, but I doubt it.  Every lender is different with how many PMI companies they work with. Each PMI company will only lend to you one time. So, if this is the route you want to go, make sure to ask the lender how many PMI companies they work with, if you want to keep repeating the 85% LTV with future investment properties.

Harjeet Bhatti · Answer

15% down on 1 unit for investment property. Lender will charge PMI . There are companies who offer PMI on investment properties.

Ali Boone · Answer

I think @Chris Mason probably has the best info, but in general, you'll just have to get clever to find those banks or lenders or whoever that will do all of that. Typically you have to do a conventional mortgage for a rental property (min. 20% down), at which point PMI isn't a thing. But if you get creative/clever like Chris is suggesting, then go with his advice as far as how to maybe pull it off.

Harjeet Bhatti · Answer

@Scott Graham We do offer 15% down payment with pmi. I can't say about WF if guidelines change. You can try them also.

Scott Graham · Answer

@Harjeet Bhatti do you have any recommendations which companies I should talk to?

Does PMI exist for rental properties???

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