Portfolio bankers/lenders with no PMI

[Peace Lily]

Hi All, I am a newbie in BP forum. I have been listening BP podcast for over one month and it has been a great learning experience. I hope to learn more RE investing from everyone here. I have a question. Does anyone have a good recommendation on portfolio lenders/local banks without charging PMI in New Haven, CT area? Many thanks in advance.

[Chris Mason]

Hi @Peace Lily,

What you are seeing advertised is just lender-paid PMI with a bumped rate. So there's still PMI, it's just baked into your interest rate, you don't see it, and it's advertised as "no PMI because you're special and we like you and it's a special program!"

If you are going conventional, not FHA, then anyone can do it, without the gimmicks (I mean, unless you enjoy slight of hand tricks, which some people do :P ).

A nice middle ground that I sometimes suggest to folks is to do one of the FTHB 97% LTV programs, and buy the policy out up-front.

I just plugged a high-FICO 97% LTV conforming scenario in, and on this particular evening it spit out 2.25%.

So that would be [ 3% down + 2.25% PMI single upfront payment = ~5.5% ] out of pocket and no monthly PMI or bumped interest rate!