I received an interesting question the other day which I felt warranted a post as it is one that I am getting more frequently these days.

Question: Can I still get an 80/15, 30yr fixed mortgage loan with no Mortgage Insurance (MI) and no escrow account?

Answer:¬† Solutions like this are few and far between these days. There are some second lenders who can get you to 90%, but a 95% loan to value is rare indeed. I would ask you “what’s your aversion is to mortgage insurance?” as it may be your only option for a conventional loan up to 95%. It is often tax deductible and actually provides less risk, as your second loan would likely be a Home Equity Line tied to the prime rate. This could cost you a lot if rates spike. I recommend that you look at single premium MI which would actually bear an upfront cost with no monthly mortgage insurance cost. You could possibly even negotiate a deal where the seller pays this.

Be careful about working under old paradigms. It seems as if you may not have explored all of your options due to an inherent aversion to MI.