How I Got a 5% Down Loan with No PMI (And How You Can Too)

Let me start by saying this: I didn’t have a six-figure savings account. I didn’t have rich parents.
I had a goal: live for free—and I was willing to do what most people won’t to make it happen.

That goal led me to one of the best financial decisions I’ve made so far:

🏠 I bought a home with just 5% down and no PMI (Private Mortgage Insurance).
And yes—it’s possible. Let me show you how.

First, what’s PMI?

Private Mortgage Insurance is usually required when you put less than 20% down on a home. It protects the lender—not you—and it can add hundreds to your monthly payment.

Most people think they have to just “deal with it.” I’m here to tell you: you don’t.

Step 1: I Knew My Numbers (Especially My DTI)

Before I even talked to a lender, I got real about my financial picture:

• I calculated my Debt-to-Income Ratio (DTI)

• I checked my credit score

• I had about 5% saved for a down payment
  All of that helped me walk in prepared, not desperate.

Pro tip: Lenders LOVE when you know your numbers. It shows you’re serious, informed, and coachable.

Step 2: I Shopped Around for Lenders (Not Just Rates)

Most people only look at interest rates. But here’s the thing—lenders offer different programs. Some allow no PMI even with lower down payments. You just have to ask.

I found my loan through Associated Bank—and they offered a conventional loan with:

• Just 5% down

• No PMI

• Competitive interest rates

Step 3: I Had My Financial Profile in Order

Here’s what helped me qualify:

• Solid credit score (above 700)

• Steady W-2 income

• Low monthly debt payments

• Proof of reserves (some money left after the down payment)

It wasn’t perfect—but it was enough.

What This Meant for Me

Without PMI eating into my monthly budget, I had:

• A lower mortgage payment

• More cash flow from my house hack

• Less stress about extra fees

And best of all? I didn’t need 20% down to become a homeowner.
That’s the part most people don’t realize: you can start where you are.

What You Can Do Right Now

If you're dreaming of homeownership but feeling overwhelmed, start here:

1. Calculate your DTI

2. Check your credit (Credit Karma is free)

3. Save what you can—aim for at least 5%

4. Talk to multiple lenders, not just one

5. Ask about low down payment options with no PMI also ask for grants I got a $7,500 grant

Want My Full Step-by-Step Guide?

This story is just a piece of what I share in
Live for Free: The Mindful Guide to House Hacking & Financial Freedom

Inside, you’ll learn:

• How to qualify for smart loan options

• How to use your home to earn money (not just live in it)

• Real-life deal breakdowns with numbers that make sense

• The mindset shift that helped me stop surviving and start scaling

You don’t need a trust fund. You need a plan.