What are my best loan options to minimize $ out of pocket and avoid PMI?

first ,are you looking to purchase or refi? THE USDA loan, is 100% no mortgage insuranace, but you are limited on the USDA homes, they have to be eligilbe.. NEXT, if you are a vet , a VA loan, is 100% no mortgage insurance, next in line is HOMEPATH LOANS, AND HOMEPATH HOMES, 3% DOWN no mortgage insurance , most times fannie mae will pay your closing costs, and you have to buy a fannie mae home , i can help you with that, and there is no apprisal. linda yourloanpartnerforlife@live.com 602 330 1598 linda you can call me this weekend, no plans, i have a cold...

The FHA requires mortgage insurance for 5 year unless you obtain a 15 year mortgage at a LTV of 78 percent or less. For conforming you would need a minimum of 20 percent down for no PMI unless you opt for a higher interest rate and choose lender paid mortgage insurance. There are other programs out there such as Fannie Mae Home Path, USDA and VA loans with less down payments and no PMI.

What you are referring to is the one time Up Front Mortgage Insurance. Which is a lump sum paid up front at the closing in order to avoid the monthly MI however this contradicts your goal of minimizing your out of pocket expense. The second option which was mentioned before is the LPMI (lender paid mortgage insurance) this typically results in a higher interest rate as the lender must yield enough profit in the origination of your mortgage in order to pay this on your behalf. The best way to compare the most cost effective way to obtain financing is to have your mortgage lender compare all of your options in a Truth in Lending Statement so that you can compare yourself and make an informed decision on your own. If someone is not willing to put the time into running the comparisons for you, they aren't earning your business.

Your best option is to let a local NON-Bank licensed loan officer review a full application to zero in on the different programs you may or may not qualify for, and then how to tweak them to best fit your individual situation. Poking around on the internet trying to figure out the various options will only lead to frustration. Let a licensed professional help you.

Darryl, if I understand your second question correctly....you are asking if you can get cash back on a purchase of a home? If this is your question, the answer is you cannot receive cash back at closing....(generally speaking, unless it is a refund of over paid down payment in the form of earnest money)