First time buyer looking to avoid PMI

[Reuben Mathews]

Hi everyone! This is my first post on BiggerPockets and I wanted to know whether there are certain lender programs that give deals for 1st time buyers to avoid PMI. Specifically, I would like to know if there are any programs that allow a buyer to put less than 20% down and still avoid PMI. Looking to buy a condo to rent out and/or live in and trying to see what's in my price range. I'm in the SoCal area btw.

[Upen Patel]

@Reuben Mathews as some have suggested, you can "avoid" monthly PMI by paying it up front or increasing your rate for the Lender pay option. All this is still your money. Just a cheap trick to fool borrowers into thinking that you are not paying PMI.

The bottom line is: if you put less then 20% down, you WILL pay PMI. You can pay it monthly, pay it upfront out of your pocket or let the lender pay it with a higher interest rate.

Don't be fooled by the no PMI marketing sepal. Remember, there is no such think as a free lunch. You got to pay some how.