No PMI with 3% down
Frequently asked questions about our 3 percent down No-PMI Homebuyer Flex program:What is the maximum loan amount with 3 percent down?
In most areas of New Jersey, the maximum amount is $453,100, which is the conventional loan limit as of January 1, 2018.
Can the buyer receive the 3 percent down payment as a gift?
Unfortunately no - The funds for the 3% down payment must come from the buyer. However, closing costs can come in the form of a gift from a family member or as a seller credit.
Can you get 3 percent down with no PMI on second homes or investment properties?
No, this program is for primary residences only. On second homes, you need only put down 10 percent to obtain the no PMI feature. On investment properties, this program is not available, as you have to put down 20 percent, which eliminates the mortgage insurance anyway.
|How does American United eliminate the Private Mortgage Insurance?
As part of a community reinvestment commitment,. our underwriters will cover the cost of PMI on your behalf. There is NO increase to the rate for this feature. In doing so, you will not have a PMI payment each month. To qualify, you need to purchase a single family home (5% down for a 2 unit home) in a moderate to low income area. If your purchase falls in a middle to upper income area, we still offer the No PMI option but at a slightly higher interest rate. Either way, the monthly savings for this low down payment loan is fantastic and very popular among our First-Time home buying community!
Is an FHA 3.5% down interest rate lower than this 3% Conventional No-PMI rate?
Typically yes, and we certainly offer the FHA loan when that option proves to be best for our clients. However, when you factor in FHA monthly mortgage insurance and the high FHA upfront cost, the FHA overall monthly payment is typically higher than this 3 percent down No-PMI option. For our clients with good credit scores, this program is definitely worth consideration.
How do I find out if this program is my best option?
We always encourage our prospective clients to speak with an experienced American United lending specialist prior to applying for a home loan. That way together we can explore all the loan options that fall within your qualifications to determine which option(s) is best for you...and your overall financial plan.