I just recently purchased a duplex. I only put 10% requiring me to get PMI. However, the amount I purchased it for is well below the actual apprasal value (more than 22%). Therefore, since I theoretically have more than 22% equity in the property, how do I get the lender to eliminate the PMI immediately? I hear you sometimes have to wait 1 or 2 years in order to get rid of it. Is there any way around this through negotiations? Any suggestions?
Thanks!
You have to read the specific lender requirements…I bought 2 houses that had PMI on them and it was based soley on purchase price, not appraised value (to eliminate the fraud from appraisals to eliminate the PMI)…
I’d contact the lender and ask them how you can eliminate the PMI…They should send you a small packet/few pages of info…That’s what Aurora did with me…It’s not info they really want you to know much about, since they want to keep the PMI in place, so make sure to be firm with them…If they tell you there is no packet of information to send you, tell them to tell you exactly where the info is for the requirements as to how it gets removed…
The Homeowner’s Protection Act governs PMI disclosure and removal for primary residence. If your duplex is an investment property this Act may not cover your situation. Your original loan documents should address the PMI issue or contact your lender. Generally they look for 80%ltv based upon original purchase price or appraisal, whichever is less.