No PMI

[Natalie Roderick]

Hi Everyone! I have a client who is being poached by another agent and told that there are loans that she can apply for that DO NOT require PMI. Every single person I've talked to says this doesn't exist but now my client is convinced that it does. Has ANYONE heard of this as option? Obviously I'm saying no PMI and not putting 20% down. Any help you can provide would help me out SO much! Even if just guiding me down the right path. Appreciate it! Natalie

[Wayne Brooks]

No there isn't, not for a normal loan anyway.....Fannie, Freddie, FHA, etc. They Can get a loan with no PMI, but the rates would be much higher, and would be much more expensive then the additional less than 1%/year for PMI. Just tell your client to talk to the Actual lender, and get their program info in writing. This should clear it up.

[David Dye]

Yes you can... You can buy out the PMI by purchasing coverage upfront. It's called LPMI (Lender Paid Mortgage Insurance. It is paid upfront and generally is passed along as a higher fee or interest rate.

Hope this helps!

-David

[Chris Mason]

@Natalie Roderick, anyone can jack the rate up or put someone in an ARM to cover the cost of upfront lender paid PMI that will 'appear' to a consumer as if there was 'no' PMI.

TANSTAAFL applies here. 

[Natalie Roderick]

Thank you so much! Exactly what I wanted to hear!