How to avoid PMI without 20% down?? - Posted by drew

Posted by TRandle on February 14, 2000 at 20:58:21:

If you must finance conventionally, ask your broker about an 80-15-5. You can find a 15% second at a slightly higher rate, assuming you meet other qualifying criteria. The payment works out about the same, but you can deduct the interest. You should also be able to avoid escrowing for taxes and insurance for a small waiver fee if you go this route. Good luck…

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!


Re: How to avoid PMI without 20% down?? - Posted by John

Posted by John on February 16, 2000 at 18:03:55:

I am also looking to owner-occupy a duplex. My lender offers two options for 100% financing with no PMI - one is a 100% loan with a 25 year term instead of 30 and the other is an 80% first for 30 years and a 20% second for 15 years. The rates are good too. The lender is a client who offers it to professionals it does business with, so it’s not available to the general public, but I mention it to make you aware that there are may be these types of options out there that you may be able to find. Hope this and other posts help you.

I got 100% at 75/15. - Posted by Nicole_AZ

Posted by Nicole_AZ on February 16, 2000 at 15:30:06:

With two separate lenders. All I paid was closing costs. I am paying higher interest than I would like but that was more do to high debt/income ratio. This is not theoretically possible, it is actually done!

Re: How to avoid PMI without 20% down?? - Posted by ali

Posted by ali on February 15, 2000 at 23:14:20:

easy way is to get 80% first and subordinate lien of 2nd 15%.

Thank You! (nt) - Posted by drew

Posted by drew on February 15, 2000 at 15:31:59:


Countrywide - Posted by Mikeb

Posted by Mikeb on February 14, 2000 at 22:28:02:

Check out They have a 80/20 loan program where you get an 80% first at 8.8% and a 20% second at about 11% and no PMI. It works out better before taxes to just put 5% down and pay the PMI. I havn’t figured the diference after taxes. Figure it both ways and see which one works best for you.