Earlier in the week, one of our blog readers asked a question about ‘is it harder to get PMI (private mortgage insurance) now then in the past.” I spoke with two home loan consultants on this issue.
One loan consultant, stated that you can still put 3% down to obtain an FHA loan but you would need a credit score of 600 or above. He also stated that for a conventional loan you would need a min of 10% down and a credit score of 620.
The second loan consultant, was David Silverman of Sherwood Mortgage he also told me you can still obtain an FHA loan with only 3% down with a credit score of 600 or above. He also stated that the condo association would need to be FHA approved. There are several requirements to be FHA approved for example: the owner occupancy of the association must be at least 50% or above, no one investor can own more then 10% of the total units, and there are pre-sale requirements as well.
David Silverman also stated for single-family homes you can obtain a FHA loan with only 3% down but the loan can’t exceed $523,750.00
One last item, Mr. Silverman stated there are still 100% financing programs avail. through Mass Housing. For more information call David Silverman at 617-536-0600 or contact the bostonreb.com for a list of mortgage brokers that we have used in the past.
* PMI (private mortgage insurance) is given to qualified borrowers who seek more than 80% financing from the lender. Once PMI is issued, the premium for the insurance is passed on to the borrower and is paid back in monthly installments.