If a first-time homebuyer is able to have a 20% down payment, PMI is not a requirement on their conventional loan at all. If not, there are several options available:

  • They can pay monthly
  • Up front in a single premium (which the seller can also pay for them if agreed to in the purchase agreement)
  • Split the premium to pay a portion upfront and a portion monthly
  • Or, enjoy the benefit of some Lender Paid MI programs such as Solarity‚Äôs Contender loan program, which has ZERO MI premium to the borrower