Top 4 Mortgage Myths - Myth #4 You must put 20% down

YOU CAN AVOID OR REMOVE PMI WITHOUT PUTTING 20% DOWN

The 20% down payment is the biggest myth out there – and it’s completely false! There are homeowners who qualified for their mortgage with as little as $0 down payment. The reason why people say you need a big down payment is to avoid mortgage insurance payments. However, there are other ways to avoid paying mortgage insurance and still put less than 20% down. [table id=3 /] *If the credit score is below 620 the Homebuyer must complete a pre-closing Home Buyer Education course. Information and requirements subject to change.

FACT: CURRENT HOMEOWNERS OFTEN PUT LESS THAN 20% DOWN ON THEIR NEXT HOME PURCHASE

Keep in mind, each mortgage type has a minimum down payment amount – and it is considerably less than 20%. Here’s what you need to know:

• On conventional mortgages, the mortgage insurance may be remove in as few as 12 months after closing.
• Piggyback mortgages are used to avoid mortgage insurance
• VA will never charge to insure your loan
• Once you have 20% equity, you can refinance to remove the PMI