Private Mortgage Insurance (PMI) protects the lender when you put down less than 20%. It does nothing for you. On a $500,000 loan, PMI can cost $200-$400 per month, adding up to $50,000+ over time.
JVM Lending’s No PMI Mortgage lets you put down just 3% and skip PMI entirely. No catch. No higher interest rate to compensate. Just genuine savings that stay in your pocket.
How PMI Normally Works
When you put down less than 20% on a conventional loan, lenders require PMI. This insurance pays the lender if you default.
Typical PMI costs: – 0.5% to 1.5% of your loan amount annually – Paid monthly as part of your mortgage payment – On a $500,000 loan: $2,500 to $7,500 per year ($208 to $625 monthly)
PMI rates depend on your down payment amount, credit score, and loan type. Lower scores and smaller down payments mean higher PMI.
With conventional loans, PMI cancels when you reach 20% equity. With FHA loans, mortgage insurance lasts the life of the loan.
JVM’s No PMI Mortgage: The Details
This program eliminates PMI entirely on loans with as little as 3% down.
Program requirements: – Minimum down payment: 3% – Minimum credit score: 640 – Maximum loan amount: $806,500 (2025 conforming limit) – Income limit: 80% AMI, OR no limit in Low-to-Moderate Income (LMI) census tracts – Property location: Must be in eligible assessment areas – Ownership: You (and spouse/partner) cannot currently own residential property
What makes this different from other “No PMI” programs:
Some lenders advertise “no PMI” but actually bake the cost into your interest rate. You end up paying more through a higher rate for 30 years instead of a separate PMI premium.
JVM’s No PMI Mortgage genuinely waives PMI without raising your rate. The savings are real and permanent.
View mortgage rates for
April 10, 2026
Who Qualifies
Location matters: Properties must be in designated assessment areas. These are specific census tracts identified for community development. JVM Lending can verify if a property qualifies in seconds.
Eligible areas exist in: – San Francisco Bay Area, California – Central California – Northern California – Southern California – Southeast California – Southeast Florida – North Florida
Income requirements: – Under 80% AMI: Qualifies anywhere in eligible areas – Any income level: Qualifies if property is in a Low-to-Moderate Income census tract
Ownership requirement: You cannot currently own residential property. This includes you, your spouse, or domestic partner. It is not just for first-time buyers, as long as you do not currently own.
The Math: Why No PMI Matters
Standard conventional loan with 3% down ($500,000 home): – Down payment: $15,000 – Loan amount: $485,000 – PMI (estimated 0.8%): $323/month – Years to 20% equity: ~7-9 years – Total PMI paid: $27,000-$35,000
JVM No PMI Mortgage ($500,000 home): – Down payment: $15,000 – Loan amount: $485,000 – PMI: $0 – Total PMI paid: $0
Savings: $27,000-$35,000
This money can go toward building savings, home improvements, paying down principal faster, or investing. Over a 30-year period, that $27,000 invested at 7% grows to over $200,000.
No PMI Mortgage vs. Other Options
- FHA Loan:
| Feature | No PMI | FHA |
|---|---|---|
| Down payment | 3% | 3.5% |
| Monthly MI | $0 | ~0.55% annually |
| Upfront MI | $0 | 1.75% |
| MI duration | None | Life of loan |
| Credit score | 640 | 580 |
| Location requirement | Yes | No |
On a $400,000 loan over 10 years: – FHA MI cost: ~$27,000 (upfront + monthly) – No PMI cost: $0
- 20% Down Conventional:
| Feature | No PMI (3% down) | Conventional (20% down) |
|---|---|---|
| Cash needed | $15,000 | $100,000 |
| Monthly PMI | $0 | $0 |
| Opportunity cost | Low | High |
If you have $100,000 available, putting down 20% eliminates PMI. But you have also locked $85,000 extra into your home. That money could earn returns elsewhere or serve as an emergency fund.
- 1% Down Payment Loan:
| Feature | No PMI | 1% Down |
|---|---|---|
| Down payment | 3% | 1% |
| Monthly MI | $0 | Yes (reduced) |
| Max loan | $806,500 | $350,000 |
| Location requirement | Yes | No |
For loans over $350,000 in eligible areas, No PMI wins. For smaller loans anywhere, 1% Down requires less upfront.
Eligible Areas: California and Florida
The No PMI program covers specific census tracts in California and Florida. Census tracts do not follow obvious boundaries like city limits or ZIP codes. Two homes on the same street can have different eligibility.
California regions covered: – San Francisco Bay Area (portions of Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara counties) – Central Valley (Fresno, Kern, Sacramento, San Joaquin, Stanislaus and surrounding areas) – Southern California (Los Angeles, Orange, Riverside, San Bernardino, San Diego counties) – Northern California (portions of various northern counties)
Florida regions covered: – Southeast Florida (Miami-Dade, Broward, Palm Beach and surrounding areas) – North Florida (Jacksonville, Gainesville, and surrounding areas)
The only way to confirm eligibility is to check specific addresses. JVM Lending can verify any property instantly.
Real Buyer Scenarios
Scenario 1: Nurse buying $550,000 condo in eligible Oakland census tract – Income: $95,000 – 80% AMI in Oakland: ~$90,000 – Over income limit, but property is in LMI tract – Result: Qualifies (no income cap in LMI areas) – Savings vs. conventional: ~$150/month PMI = $12,600 over 7 years
Scenario 2: Teacher buying $400,000 home in eligible Jacksonville, FL tract – Income: $58,000 – 80% AMI in Jacksonville: ~$60,000 – Result: Qualifies – Down payment: $12,000 (3%) – Monthly savings vs. FHA: ~$200 (PMI + lower rate)
Scenario 3: Family buying $700,000 home in Los Angeles – Income: $140,000 – 80% AMI exceeded, property not in LMI tract – Result: Does not qualify for No PMI – Alternative: HomeReady, conventional with PMI, or FHA
How To Apply
- Check property eligibility: Share addresses you are considering with JVM Lending
- Verify income qualification: Under 80% AMI or in LMI tract
- Get pre-approved: Takes minutes, no credit impact
- House hunt strategically: Focus on qualifying census tracts
- Close and save: JVM’s streamlined process makes closing efficient
The No PMI Mortgage is one of JVM Lending’s most valuable programs. If your target area qualifies, the savings over the life of your loan can be substantial.
Contact JVM Lending at (855) 855-4491 to check if properties you are considering qualify.
At JVM Lending, we help buyers, homeowners, and investors make confident decisions in the evolving housing market. Whether you are purchasing, refinancing, or planning ahead, our team is here to guide you every step of the way.
