How to avoid PMI without 20% down?? - Posted by drew
Posted by drew on February 14, 2000 at 19:29:01:
Any info on this situation is appreciated:
I’m about to buy a duplex and will owner occupy 1 of the units for the forseeable future. My plan is to put 5% down and conventionally finance the rest. I want to avoid PMI, but the seller will not carry a second.
Is it possible (not just theoretically!) to get a first for 80% and a second or HELOC for the other 15%, thereby avoiding PMI? Yes, I know the 2nd/HELOC would be at a higher interest rate, but at least ALL of the interest would be deductible one way or another. If it is possible, do you know of any lenders in the DC area that do this sort of thing.
I’ll be talking to my local mortgage broker tomorrow, but wanted to see what the smart folks here have to say before I start drilling him.
Thanks for your help!