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<blockquote data-quote="Flipx99" data-source="post: 4161180" data-attributes="member: 562352">See, when you borrow money for housing, the lender wants some assurance you will pay. If you do not have 20% down with FHA housing, you have to pay private mortage insurance until you have 50% equity in the home. This insurance comes in the form of a slighly higher interest rate.I can afford a house in the $120,000 range. My lender will loan me 95% of the appraised value of the home before I pay PMI. I am thinking that under current market conditions I can buy a house below it&#039;s appraised value; thus, my down payment would be less. If they appraised said house at $150,000, I wouldn&#039;t need a down payment.A way around the PMI is an 80/20 loan. Where you borrow the downpayment at a slightly higher interest rate than the remainder of the mortage. This is generally cheaper than paying PMI.Knowing more about your financial situation would allow me to provide better advice.</blockquote>

[QUOTE="Flipx99, post: 4161180, member: 562352"] See, when you borrow money for housing, the lender wants some assurance you will pay. If you do not have 20% down with FHA housing, you have to pay private mortage insurance until you have 50% equity in the home. This insurance comes in the form of a slighly higher interest rate. I can afford a house in the $120,000 range. My lender will loan me 95% of the appraised value of the home before I pay PMI. I am thinking that under current market conditions I can buy a house below it's appraised value; thus, my down payment would be less. If they appraised said house at $150,000, I wouldn't need a down payment. A way around the PMI is an 80/20 loan. Where you borrow the downpayment at a slightly higher interest rate than the remainder of the mortage. This is generally cheaper than paying PMI. Knowing more about your financial situation would allow me to provide better advice. [/QUOTE]

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