 TITLE: What Is Private Mortgage Insurance? CONTENT: Can a Good Credit Score Help Me Avoid PMI?\n------------------------------------------\nIf you have exceptional credit, you could qualify for an 80\/20 mortgage, which avoids PMI and gets you into a home for just the closing costs. You do this by taking out a mortgage for 80% of the property value, and a second loan for the 20% down payment. Both the 80% loan and the 20% loan are secured against the home, so defaulting on either one could result in foreclosure.\nLenders are highly selective about issuing 80\/20 loans. In addition to a great credit history, you may be required to show a strong record of regular employment, meet minimum requirements for savings and other assets, and demonstrate that your outstanding debts total less than 45% of your income. These requirements put 80\/20 loans out of reach for many borrowers, but if you qualify, it's an option worth investigating.\nMany homebuyers see private mortgage insurance, and the hundreds of dollars per month it typically costs, as little more than a necessary evil. But by allowing homebuyers to purchase a home with a down payment of less than 20%, PMI lifts a major roadblock for many would-be homebuyers. It's a tool worth understanding, and it might help you get into the home of your dreams. END