Buy in SF for Five Percent Down with No PMI or MIP
Program Allows More To Buy in Emerging Areas
Are you hamstrung by PMI (private mortgage insurance) or MIP (mortgage insurance premium) because you lack the gold-standard 20 percent down payment?
Here’s a program available from mortgage lenders here in the City that would allow you to put down 5 percent to purchase a home in the City without having to pay PMI or MIP. And it also turns out some lenders are offering an incentive program where they waive the bank’s underwriting fees (approx. 1600).
The program is pretty neat.
Requirements: you must not own property now, but after loan starts you can. The program is part of California lending requirements that obliges lenders lend in areas that are ‘transitional’ These loans are kept local (portfolio) and are just the same as a 30-year fixed loan where you can put 5 or 10 percent down – BUT not the same in that the rate is a little higher but there are NO PMI or MIP costs to pay…. ever. Requirements are that you have a job and would otherwise qualify for a mortgage. Loan limit is $625k, which should get you plenty in the areas elligible throughout the entire city.
Let me know if you have questions about the program or to find out where you can buy!