Possilble Dumb Question But....
If you buy a property that you intend to use for invesment purposes, do you still have to pay PMI or is PMI only for a primary residence. How can you put down the least amount of money and still avoid paying PMI? Thanks
Well usually you can only get 80% financing from a bank for an investment property, and that would eliminate PMI since PMI is only when the property has more than 80% LTV.
A property that is financed over 80%, whether for your personal home or investment, you will have to pay pmi.
An alternative that would eliminate this is to get a first at 80% and a 2nd mortgage for the balance. Some lenders will bark at this option for a rental property, but it is one alternative approach!
Best of Success!
BAMZ
[addsig]
Here is an option I do all the time. Basically I get a family member/friend front 20% as a "gift". After closing I walk across the street to the bank and take out a HELOC for the 20% I put down. Pay back the relative and smile, I've just got a 100% loan with no PMI, all 100% legal.
Of course, if you have the 20% to put down, you don't need the family member, but I do
that's a good idea savyyoungers.
But is it true you can't get more than 80% loan for an investment property? like on a two family unit, it is required to put 20% down???