We have been looking at homes that are for sale by owner in which some will do contracts and some will not. The houses we are looking at will have about 10,000 in equity when we buy it because of the seller not having to pay realtor fees ect. Question is, if i buy a house for $105,000 on contract that appraises for 115-120k, Can i refi. out of the contract into a mortgage and avoid paying PMI or doing a 1st and 2nd mortgage?
Call some mortgage brokers to go over the numbers…
But you want to do an 80/20 loan if going 100% of 80/15/5 means 5%downpayment… no PMI on these loans…
DOnt buy for 105K when its worth 120K and plan to refi…closing cost on a refi are same as purchase which can be 3-5% plus a prepay penalty…
andrew