The RE crash--update

Parent Cafe
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It’s still required if you need more than 80% financing. Of course now that the banks are tightening up, you might need 20% down just to get the loan anyway so the PMI becomes moot. </p>

<p>I have heard of folks ‘cheating’ of sorts where they have a secondary loan to fund a larger deposit up to 20% of the purchase price thus avoiding the PMI. It was all legit with the banks, although this was a few years ago and I very much doubt you could do that today.</p>

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<p>^^ yes, I heard about that secondary loan trend, too, and thought it was common practice. Maybe here in Southern California it was.</p>

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<p>Me too BB. I work on the commercial side of the RE business and had NO idea people were getting home loans with such ease. When I got mine I had to write a letter explaining a bounced check in my college days. I was about 35 at the time I got the loan!.</p>