I know that I will avoid PMI if I put 20% of my own money down. Don’t want to do that.
Is 80/10/10 an option on a non-owner occupied? (I’ve heard it’s not, but desiring a sanity check from the forum.) Or, are there other options I haven’t thought about?
Also, is there a TX statute (or case law) that specifies that PMI cannot be collected if the property appraises for 80% LTV? Thinking that I can put 10% down, and with appraisal in hand, petition the lender after closing to stop PMI collection. I’ve heard that works … sometimes.
I have heard in the past that once you own a property and it increases in value above the 80% that you may request the insurance removed. I do not have any personal experience in that except I was not required to have PMI on my own house because it appraised at $450,000 and I only borrowed $260,000 to build it. I also have refinanced several rental properties and they only loaned 70% LTV thus no PMI either. If you buy property at 80% of the appraised value you should not have to buy PMI either I would not think. Maybe you are paying too much for the property you are trying to buy. If you pay too much at least get it with 0 down. Hope i helped a bit with my rambling.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
The SFH I’m buying appraised at $117K and I’m buying it for $90K so it should not be incredibly difficult to get the PMI removed after closing.
PMI is taking a back seat right now. The kicker is that I found out very recently that there MAY be a IRS tax lien against the house. Today, the realtor and I are talking with the seller to find out more info. Even if he’s not totally honest, the title search should tell me what liens are attached to the property…wouldn’t it?
I’ve spoke with people that have run title searchs and they’ve come up clean, but right before closing the IRS jumps out of the bushes and attaches the lien to the property :banghead . So to answer your question, I’ve spoke with people who have experienced the worst case scenario. They said the good news is that the IRS is usually not all that interested in the property, but more so in the seller. I also spoke with an investor in CA, that had the IRS spring up last minute, but luckily just after the closing and recording of the deed. The deed was recorded to him now, and he said they had no recourse with regard to the house. Hope this helps, if anyone else has heard the same or different, please chime in. Good luck!
Thanks, Shawn. If the title search comes up clear, I’m tempted to obtain the seller’s SSN and call the IRS the day of closing to see if a lien is attached to the property. If so, I can walk away. If not, they won’t have time to file a lien, and the property will be deeded to me free and clear.
Don’t want the IRS to jump out the bushes and say “boo!”.
Forum: I echo what Shawn requested. If anyone has encountered this before, please advise ASAP!! Thanks!!!