Is there a way to buy a personal residence at 100% financing and avoid PMI or am I just conjuring up a far fetched dream?
YES YES AND YES
ONE you can get a loan that has a self insured rate and that means the rat includes mortgage insurance. that rat is typically 1-.5% higher and I suggest this is a good program because interest is tax deductable and mortgage insurance is USUALLY not.
TWO you can get a combo loan like a 80%LTV first and 20%second and because the first is at a 80% there is not MI on it
THREE you can get seller paid grant and get your LTV lower and still benefit from not having to come it with money or do a combination of all.
Thanks Rich. Now where can I find out more on options 1 and 3? They sound interesting and much like what I am looking for. Is taking out 2 mortgages one for 80 and one for 20 as easy as it sounds, or is it a bit more complex?
It is not more complex and is actually done the majority of the time on loans over 80% LTV. Both loans will be closed and most likely serviced by the same bank and you will sign for both at the table at the same time when you close.
Yes Like rbaxter stated they are just a easy for you do get it is all done and orchastrated by your broker.
Your broker if experienced they should be familiar with all investors needs that is why I keep stating in my post that you should look for a broker that has over 10 year experience working in investment loans and closes at least 5-10 investment loans a month and invests in realestate themselves an buys at least one home a month and that is not a lot too ask for a broker.
Your broker is Key to your success and people continue to go to brokers whom I call are general practitioners when you should be going to a brain surgeon that does investment loans there are mortgage people that specialize and investors must know that.
Please ask your potentional mortgage brokers these questions and then you will find the right one that works with your special needs most investors need to do is ask just as much questions as you would with a doctor that has your life in his hands as you would to you mortgage broker that has your financial and investing life in their hands.
You can also get HUD and VA loans if you qualify for them. They have “insurance-like” features but they are not PMI…
Yes, if you are a veteran, that is one of the best loan programs going- you can qualify with questionable credit, and can borrow up to 100% with no mortgage insurance at a competitive rate. However, there is a funding fee that VA charges at closing, but it can be financed too.