Most lenders require PMI when you finance with a conventional loan with less than a 20% down payment. This varies from loan to loan and depends on numerous other factors like the total down payment, the total loan amount, your credit score, your interest rate, and more.
To avoid PMI:
- If you can, put down a higher down payment, at least 20%
- If you are eligible, compare conventional financing with a government loan like the FHA Loan, VA Loan, or USDA Loan
- Pay down your mortgage balance, you can typically cancel PMI once you’ve built up at least 20% equity in your home. Ask your lender for specifics!