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but hadnt heard that there are lenders out there who dont require PMI for less than 20% down...

FWIW, when I first bought, I used a "80-10-10" (80% first, 10% second, 10% down)
I think those are rarer (if not gone altogether).
It was more expensive for the 2nd - but the overall interest per month/per year was cheaper than if the 1st went to jumbo rates + PMI.
My suggestion would be to contact a few credit unions in the area (and maybe a bank or two) and see if they can do a 2nd at closing and >80% LTV.

Or if they can't fund a 2nd at closing, see if they can do it immediately afterward - in which case the borrowing from the 401k can be repaid, and the interest probably becomes tax deductible (because it will be secured by the home)
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