Looking to avoid Mortgage Insurance?

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
Hi LoanSafe Members,</SPAN>

There has been a new partnership & program implemented to help our borrowers essentially obtain the lowest mortgage payment possible with having a limited equity position in their home. We have been pre-selected for this program due to the positive performance of our loans on the secondary mortgage marketplace and our own servicing portfolio.</SPAN>
There have been rumors of other programs but I personally can’t speak for them at this point but this one I can after funding a few transactions underneath it.</SPAN>

How do you avoid Mortgage Insurance (MI) without putting 20 percent down?
</SPAN>
We as a direct lender would fund your new purchase or refinance at 80 percent of the value of your home or purchase price. At that time we would have our second portfolio lender come in and lend the other 10%! This would mean you would only have to come up with a 10% down payment (1/2 the amount of what it would normally be) and you can avoid the mortgage insurance. </SPAN>

Some Details of the program:</SPAN>

1 – 2 Family Residences and Purchases of Condo’s</SPAN>Up to 750,000.00 Max Combined LTV 89.99 percent, Minimum FICO 700, Interest Rate Prime + 1.99</SPAN>
Up to 750,000.00 LTV 80 percent, Minimum FICO 700, Interest Rate Prime + 1.49</SPAN>
**in some cases where the max LTV allowable is 70-75 percent if investment**</SPAN>
750,000.00 – 1,000,000.00, Max Combined LTV 85 percent, Minimum FICO 720, Interest Rate Prime + 1.99</SPAN>
750,000.00 – 1,000,000.00, Max Combined LTV 80 percent, Minimum FICO 720, Interest Rate Prime + 1.49</SPAN>
**in some cases where the max LTV allowable is 70-75 percent if investment**</SPAN>

Condo Refinance</SPAN>
Up to 750,000.00 Max Combined LTV 85 percent, Minimum FICO 700, Interest Rate Prime + 1.99</SPAN>
Up to 750,000.00 LTV 80 percent, Minimum FICO 700, Interest Rate Prime + 1.49</SPAN>
750,000.00 – 1,000,000.00, Max Combined LTV 85 percent, Minimum FICO 720, Interest Rate Prime + 1.99</SPAN>
750,000.00 – 1,000,000.00, Max Combined LTV 80 percent, Minimum FICO 720, Interest Rate Prime + 1.49</SPAN>

We also have programs that finance up to 90% for borrowers that have a large portfolio of assets where we leverage 20% of the assets against the current loan without pulling them out of the portfolio, which we all know is income generating and would hate to do that.
</SPAN>
With the ever evolving mortgage marketplace it is my duty to keep you guys up to speed to know what’s available. Sometimes many borrowers contact me and say that they feel like they’re in the dark and there are so many different avenues they have tried or are available to them that they don’t know which one to pick. It’s important to work with a qualified, trusted loan advisor that can find the program to best suit you and your family’s needs the best. </SPAN>
 

jhn_plsn

LoanSafe Member
Apr 29, 2008
357
6
18
Riverside, Ca
Just wanted to read the original post and it seems like one has to respond in order to get the post to align correctly. Otherwise it comes up in a 1" width column which is downright annoying.

Thanks for posting the info.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
That's strange, it could be because of ad placement - if you would like me to send the original copy of the article to you I would be more than happy to do that. Just shoot me an e-mail.
 

jhn_plsn

LoanSafe Member
Apr 29, 2008
357
6
18
Riverside, Ca
Thanks for the offer Erik, but I think the issue is on the original post in a thread there is a double banner that causes the text to align in a very narrow column.

Would this type of insurance also include payment assistance in cases of job loss or major injury/illness? It may be worth having. No matter how healthy you think you are you never know what may come your way.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
Thanks for the offer Erik, but I think the issue is on the original post in a thread there is a double banner that causes the text to align in a very narrow column.

Would this type of insurance also include payment assistance in cases of job loss or major injury/illness? It may be worth having. No matter how healthy you think you are you never know what may come your way.
Hi Jhn_plsn, Thank you for the kind words. Mortgage Insurance is to protect the lender in case the borrower defaults on the mortgage because they initially put less than 20% down or have less than a 20% equity position. It doesn't help you in case of job loss/injury...etc.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Thanks for the offer Erik, but I think the issue is on the original post in a thread there is a double banner that causes the text to align in a very narrow column.
Just FYI, we no longer have this issue! Original posts will now show up w/o the double banner..
 

RoseiB

LoanSafe Member
Sep 7, 2015
26
6
3
51
Main reason to avoid Mortgage insurance is It may not be deductible and very hard to cancel. many lenders also offer a similar loan arrangement for buyers only able to put down 5% toward a down payment.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,101
181
63
San Diego, California
www.loansreduced.com
Yes there are different options for mortgage insurance. Some will say there is no MI however it's called Lender Paid MI. Lender Paid MI is built into the interest rate (which may be higher than market) but can avoid MI and also provide a more significant tax benefit. If a borrower is planning on paying their mortgage down significantly I wouldn't recommend going this direction.