How to Avoid PMI
There are a few ways you can avoid the PMI. One way is a minimum of 20% Cash Down. But on the average price of houses selling at $250,000 +/- that’s $50,000 and not many people have that kind of Cash laying away and still cover their Closing Cost.
So, one way to avoid PMI is in the type of Loan Product, and it will really depend on your credit worthiness to qualify such as your FICO and DTI. The product is called an 80/10/10, which means there will be two (2) liens against the house (or 1st & 2nd mortgage). So that would be 80% 1st lien, 20% 2nd lien and 10% Cash Down.
Another way is to hire a Realtor (ME) that knows how to negotiate and help purchase the house down below Market Value. But this is easier said than done, especially if it’s a Seller’s Market in the area you’re interested in.
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