Most people these days have heard of PMI, aka MI, aka Mortgage Insurance. Some may even cancel their loan process or home buying experience because they were taught that PMI is a “dirty word.”
PMI is an option designed to help those that would not normally qualify for a mortgage still get into a home. Banks and Credit Unions are very concerned with new mortgage regulations and as a result, many have been holding their funding for only the perfect or ideal borrowers. You know what that perfect borrower is? Most want to see a minimum 20% down, 800 credit score, lots of money in the bank, and an established work/residence history. All these items will help to show you are “stable” in their eyes.
The truth is, most people will not fit this model. The solution to this? Private Mortgage Insurance, or PMI. This is more of a product for the bank than yourself. It will give the bank the SECURITY/SAFETY NET they need to issue a loan to you. Mortgage insurance is product to protect banks from taking on high risk loans from going into default . This does not save the borrower from foreclosure, but helps to reduce losses to the bank.
You may be saying to yourself, "I do not care why, I will never pay mortgage insurance." Well you are in luck, because I offer program for you that pays the mortgage insurance so that you don't have to.
If you have….
1. Some assets in the bank (enough to show 2 months of mortgage payments in case of an emergency)
2. Good credit
3. As little as 5% down payment
We can issue a FIXED rate mortgage without charging you a monthly mortgage insurance premium. This is what lender’s call LPMI (Lender Paid Mortgage Insurance). If you would like to know more, feel free to call/text/email me!
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