No PMI Mortgage: Mortgage Insurance Buster Loans

If you’re looking to save on your mortgage, avoiding private mortgage insurance (PMI) can make a big difference on your monthly payments. For first-time buyers, no PMI mortgage options make homeownership more affordable from the start, freeing up your budget for other priorities.

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    Avoid PMI with our no PMI home loan program. Keep in mind that you can also avoid PMI through government-backed loans, piggyback loans, non-QM loans, or down payment strategies. Partner with an experienced no PMI mortgage lender to help you find options that make owning a home more affordable.

    KEY TAKEAWAYS

    • No PMI mortgages can reduce your monthly costs, making homeownership more affordable over time.
    • Government-backed loans like VA, USDA, and FHA offer options to skip PMI, especially helpful for first-time buyers with smaller down payments.
    • Non-QM loans like jumbo, bank statement, DSCR, and asset-based mortgages do not have PMI requirements.
    • Making a 20% down payment, using a piggyback loan, or looking into home buyer assistance programs are other ways to avoid PMI.

    What Is Mortgage Insurance?

    Mortgage insurance, or PMI, is a policy that protects lenders if you can’t make your loan payments. If your down payment is less than 20% of your home’s purchase price, your lender may require PMI to reduce their risk. With mortgage insurance, you pay a monthly premium on top of your mortgage to cover this policy.

    Ultimately, PMI opens doors to homeownership even if you don’t have a large down payment saved up. However, it does add an extra cost each month. You’ll usually need mortgage insurance for conventional loans with a smaller down payment.

    The good news is that once you build enough equity, usually around 20%, you may be able to cancel your PMI, reducing your monthly payment and saving you money in the long run.

    Our No PMI Mortgage Program

    Griffin Funding’s no PMI mortgage program lets you buy a home without paying for private mortgage insurance. This program is especially helpful for first-time home buyers or others who may not have a large sum saved for a down payment. With this program, you can bypass PMI with as little as 5% down. This allows you to purchase a home sooner with less money upfront, and avoid paying costly monthly PMI premiums.

    Be aware that the tradeoff with this type of loan is that it comes with a slightly higher interest rate than a traditional loan with PMI. However, some borrowers find the savings on PMI outweigh the small increase in rate, especially when budgeting for monthly costs.

    If you’re looking for a mortgage but haven’t saved up at least 20% for a down payment, Griffin Funding’s no PMI loans offer a way to make homeownership possible sooner, with less money required upfront. The no PMI mortgage can be accomplished by the lender paying the MI, also known as Lender Paid Mortgage Insurance (LPMI), a piggyback second mortgage, or a non-QM loan.

    Think you qualify for a loan? Contact us today to find out!

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    Other Mortgages Without PMI

    Government-backed loans like VA loans, USDA loans, and FHA loans all offer options that allow you to avoid PMI. Each of these loan types provide unique benefits and other important requirements to be aware of.

    VA loans

    Avoid PMI with a VA loan, which can save you a significant amount on monthly payments. A VA loan provides options for eligible service members, veterans, and surviving spouses to buy a home with great benefits. Unlike conventional loans, where lenders require PMI if you put down less than 20%, mortgage insurance on VA loans works differently.

    While VA loans don’t require PMI, they do charge a one-time VA funding fee. This fee helps offset the loan’s cost to taxpayers and supports future VA loans. While the funding fee varies based on factors like your loan type and how many times you’ve used the VA loan benefit, it’s often less expensive than paying monthly PMI over years.

    USDA loans

    A USDA loan helps make homeownership more affordable in rural and suburban areas. With a USDA loan, you can buy a home without a down payment and still avoid PMI.

    Instead of PMI, USDA loans charge a small upfront fee and an annual fee that is generally lower than standard PMI. This unique setup can make USDA loans an appealing option for home buyers seeking no PMI loans in eligible areas. It can also be a game-changer for first-time buyers or those with limited upfront funds.

    FHA loan

    An FHA loan is designed to make homeownership accessible, especially for first-time buyers. FHA loans require a smaller down payment, often around 3.5%, which is lower than many conventional loans. However, instead of PMI, FHA loans use a similar type of insurance called MIP, or mortgage insurance premium. This insurance protects lenders, allowing them to offer more flexible lending terms.

    When comparing PMI vs. MIP, the difference is that PMI is required on conventional loans with down payments under 20%, while MIP applies specifically to FHA loans regardless of down payment. MIP has both an upfront cost and an annual premium, which can be rolled into your mortgage payment.

    Think you qualify for a loan? Contact us today to find out!

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    Other Ways to Avoid PMI

    If you’re looking to avoid PMI but don’t qualify for a government-backed loan, there are other options to help you skip this extra monthly expense. Here are a few ways you might avoid PMI with a conventional loan:

    • Make a 20%+ down payment: The simplest way to avoid PMI is by putting down 20% or more, which most lenders require to waive PMI.
    • Purchase highly appreciable property: Buying a home in a rapidly appreciating market can help you build equity faster, allowing you to cancel PMI sooner.
    • Research home buyer assistance programs: In some cases, no PMI options for first-time home buyers are available through state or local assistance programs that provide down payment help, reducing or eliminating PMI requirements.
    • Use a piggyback loan: With an “80-10-10” or an “80-15-5” loan, you take out a second loan to cover part of your down payment, so you only need to finance 80% with your primary mortgage, letting you avoid PMI.

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    Reach Out Today to See If You Qualify for a Mortgage With No PMI

    No PMI mortgages make homeownership more affordable, helping you avoid extra monthly costs and move closer to your financial goals. Whether you’re exploring government-backed loans, saving for a larger down payment, or considering a piggyback loan, there are many ways to avoid PMI and make your dream of homeownership more affordable.

    Griffin Funding stands out among no PMI mortgage lenders, offering flexible loan options with competitive rates and experienced advisors to guide you every step of the way. The Griffin Gold app makes the process even easier, helping you plan with smart calculators, connect with expert loan specialists, and assess how close you are to qualifying for a mortgage. With the right resources and support, you can make homeownership a reality on your terms.