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Originally Posted by hoyacoug
Just do an 80/20 loan. You put 0% down, but take out 2 loans, a senior and a junior, at 80% and 20%.
You will not pay the pmi.
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Mrs. Hippie and I are doing this as well. We plan to turn the house in 3 years so we went with a variable interest only on the 80% loan with as low a rate as possible. We pay the interest on the 80% and then pay the principle we would have paid toward the 80% to the 20% loan (higher interest). Our payment works out to be the same and we will have sold the house before the interest rate bumps on the 80% loan.
If you're planning to turn the house fast, it's a really good way to go.