Know of any NJ Lenders that offer 5% down w/no PMI?

Question

I've found a few of these myself, though few are willing to lend on duplexes like I want to buy. For example, TD Bank offers mortgages at 3% down, lender paid PMI. I found that Investors Bank offers a program with 5% down no PMI on a duplex (but no larger). Does anyone know of any other lenders that offer similar programs?

Thanks!

Stephanie Medellin · Answer

@Steven Booty Many times when you see no PMI, there's actually lender paid mortgage insurance built into the rate (as you mentioned above). So the lender is paying an upfront mortgage insurance premium instead of you paying a monthly premium. This is a great alternative, but please realize you're getting a slightly higher interest rate because of it.

Also consider that if you pay monthly MI with a lower interest rate, you can remove the monthly mortgage insurance in the future when you've either paid down your balance to 78-80%, or the value of your home has risen. You'll still have that low interest rate, but now without the monthly mortgage insurance.

So it's all about your personal preference, how long you plan to stay in the home, etc.

I'm not sure about conventional lenders offering 3 or 5% down on owner occupied duplexes, only single family homes.

Troy Smith · Answer

You must mean a loan for your own primary residence? If you're finding loans like that for investment properties, i wanna hear about it.

Grace Law · Answer

Peapack-Gladstone also offers a similar loan program for owner-occupied properties**:

- 5% down for 1-2 family properties / 10% down for 3-4 family properties- 30 year fixed conventional loan

- No PMI

- No Pre-qual costs/points

- No maximum loan amount, though income limits apply

- Available for properties in Hunterdon, Middlesex, Somerset / Essex, Morris, Union / Hudson counties. Income limits vary depending on county.

**This program was available when I purchased my condo in 2017, contact the bank to ensure this program is still presently offered.

Sunny Burns · Answer

Conventional

Kenneth Chen · Answer

@Sunny Burns@Steven Booty Thank you, guys. Forgive the naive question, do the loans you refer to for 3% or 5%, are they conventional loans or FHA loans?

Sunny Burns · Answer

Trustco Bank only for Bergen County NJ. You can put 5% down on an owner occupied 4-family with no PMI.

Also Roselle Bank, services most of NJ, similar terms, although they don't do preapprovals.Anyone know any other banks?

Steven Booty · Answer

Oh yes! That's the very important detail I neglected to mention!

Know of any NJ Lenders that offer 5% down w/no PMI?

Know of any NJ Lenders that offer 5% down w/no PMI?

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