25% down for PMI?
So I spoke with the local WaMu bank to get pre-approved for a mortgage. To make a long story short, they told me that in order to avoid PMI, we need to have 25% down! This is because the bank is going to assume that home prices in CA are go to continue declining AFTER we buy, by at least 5%. It doesn't matter that we haven't found a home yet (next week, next month, in the next 3-6 months?).
Has anyone else come across this? Or is this specific to Wamu and some of the problems they are going through?
I am definateley going to talk to a different mortgage brokers.
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