3% Down, No PMI Mortgage !?!?

[Connor Anderson]

A local credit union in my area (West Michigan) is not only offering, but is advertising on large billboards on the side of the highway a 3% down, no PMI, non FHA mortgage. Am I the only one seeing these types of crazy loans or are there other areas of the country where people are seeing this?

At this time I am not looking to take advantage of a loan like this because I am moving out of state and as a recent college grad have more debt than you can shake a stick at. However I am curious, when my financial situation changes in the next 6-12 months can I use this loan with a local Michigan bank to invest in Denver area, which will be my new home base? 

Would love feedback on what other kind of loans everyone else is seeing out there (Denver area especially) and an answer to if I can use this loan and invest out of state?

PM me if you would like the name of this Credit Union.

Thanks

[Chris Mason]

It's not crazy, but it's not quite an honest advertisement either. 

"No PMI" is actually lender paid PMI with a bumped rate.

It is an option worth exploring, but calling it "No PMI" isn't 100% truthful if you're paying for it every month in your interest rate, or at closing when your discount points to get a normal interest rate are higher.