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Registered
Join Date: May 2005
Location: Lake Oswego, OR
Posts: 571
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PMI was very rare in the market during the up years. 100% loans with no income verification was considered safe when homes were appreciating. The other option was 80/20 1st/2nd mortgages where the first did not require it because of the 80% LTV and the 2nd did not because it was a home equity loan (aka insane).
Opps.
The new/current subprime requires PMI. I'm refering to FHA loans, which are almost no money down loans given to borrowers with shaky credit history in declining real estate markets. Would you lend these borrowers money? Not a chance. Is your government? Yup.
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