Who can get a low or no down payment PMI mortgage?
Because PMI mortgages are risky for lenders, they require good income and good credit. There are two steps. The first step is to be approved by the mortgage lender. The second step is to be approved by the PMI insurer. Most mortgage lenders refer their PMI business to one or two PMI insurers (there are only seven PMI companies in the nation). Because the originating lender knows the PMI qualification standards, after obtaining approval by the originating lender there usually is no problem obtaining PMI. How much does PMI cost the borrower? PMI payment plans vary widely among mortgage lenders. Some lenders include PMI in their loan interest rate at no extra charge. But PMI borrowers can be certain they won’t obtain the lowest interest rate by making a low or no down payment. The 103 percent PMI mortgages even include closing costs. Other PMI lenders charge a PMI fee at the time of loan closing, plus a monthly PMI premium, which varies with the amount of the insured mortgage. These fees
