“Is anyone still packaging 80/20 loans to avoid PMI?”
Answer:
(An 80/20 loan is financing with an 80% first loan, a 20% second loan, and zero down. PMI or Private Mortgage Insurance insures banks against loss on loans with under 20% down.)
Too much risk. 80/20s are a thing of the past.
PMI firms are requiring owner-occupant buyers to put at least 10% down on conventional loans.
Your best option for low down is -0- down VA if you’re eligible or 3.5% down FHA.
