Most people still follow the 20% down rule so you do not have to pay mortgage insurance. First time buyers are rarely in a position to put down 20% so they have few options. No one wants to pay mortgage insurance. So what are your options? You can do Lender Paid Mortgage Insurance but this usually comes with a higher interest rate so the mortgage insurance cost is hidden. I am happy to say I have spoken with Founder of MN Capital Home Mortgage, Michael TenEyck, and I way happen to hear there are so true no mortgage insurance options available.
TenEyck says MN Capital originates no mortgage insurance home mortgages with loan amounts to $1.25 million with 5% down for purchase transactions. TenEyck went on to say this program is also available to rate & term and cash-out refinances as well. This program utilizes a first and second combo mortgage. There are some limitations to the refinance options but they are not as limited as you would think. Contact MN Capital directly for the refinance details. MN Capital Home mortgage is based in Orange County California company and can be reached at http://www.mn-capital.com or 800-961-6123.
This no mortgage insurance options along with the revised automated underwriting changes as of July 29th should make home mortgages easier to obtain for home buyers. Fannie Mae rolled out the DU 10 upgrade on July 29th.