Consumption and Real Estate
Is there any way in arizona to not have mortgage insurance other than putting 20% down payment?
Question : Is there any way in arizona to not have mortgage insurance other than putting 20% down payment?
arizona mortgage
Best answer:
Answer by Dom
Not really unless you have nice parents who can loan you the money. Get that $ 8000 tax credit and apply it to your new house. Also remember that those PMI payments are deductible on your taxes
You have 3 choices:
Find an owner with a free and clear house who will accept payments. You don’t get a mortgage at all. The seller holds your “mortgage” in a carryback. No MI.
Ask the seller to carry the difference between your down payment and the 80% mortgage. The law is that the seller must carry for at least 5 years. Most sellers are willing to help but they want to be paid off in 2-3 months. They must wait 5 years.
You find a “hard money” lender in the newspaper classifieds. He loans you the entire purchase price and you pay him 18% interest. After you have been in the home for 2 months or 6 months, you will start to receive letters from banks offering to refinance your house. YOu hire one of them to refinance the house but only if the appraisal is high enuf so you don’t have to pay MI. It will probably work if your credit is good..