Know of any NJ Lenders that offer 5% down w/no PMI?

[Steven Booty]

I've found a few of these myself, though few are willing to lend on duplexes like I want to buy. For example, TD Bank offers mortgages at 3% down, lender paid PMI. I found that Investors Bank offers a program with 5% down no PMI on a duplex (but no larger). Does anyone know of any other lenders that offer similar programs?

Thanks!

[Stephanie Medellin]

@Steven Booty Many times when you see no PMI, there's actually lender paid mortgage insurance built into the rate (as you mentioned above). So the lender is paying an upfront mortgage insurance premium instead of you paying a monthly premium. This is a great alternative, but please realize you're getting a slightly higher interest rate because of it.

Also consider that if you pay monthly MI with a lower interest rate, you can remove the monthly mortgage insurance in the future when you've either paid down your balance to 78-80%, or the value of your home has risen.  You'll still have that low interest rate, but now without the monthly mortgage insurance.

So it's all about your personal preference, how long you plan to stay in the home, etc.

I'm not sure about conventional lenders offering 3 or 5% down on owner occupied duplexes, only single family homes.