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Can I increase requested loan amount after bank appraisal came back higher than market value?

Hello! During loan processing, bank appraised property higher than purchase price. I was planning on putting 20% down to avoid PMI. Can I now put down less than 20%(meaning ask bank to incease loan amount) and avoid the PMI? 
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September 10 2013 - US
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Answers (7)

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No, the loan is based on the lesser of the contract purchase price or appraised value. You bought well!  Unfortunately, you cannot benefit at this time, but you can in the future if you want to remove PMI, but you would need to refinance. Check with your lender to see how long you must wait to refinance.
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September 10 2013
Mortgage lenders for a purchase will lend off the lower of the sale price or the appraised value.  In your instance, the lending value will be the sales price as it is the lower of the two. 
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September 18 2013
They will alway go off the lower of the appraised value or purchase price when calculating loan to value. After 12 months you could qualify for a cash out refinance to try and recapture some  of your down payment.  
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September 11 2013
USDA will allow you to raise your loan amount to help finance closing costs even over the purchase price if your appraisal comes in higher. That is the only program/loan that will allow it.
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September 11 2013
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Even if you could and thanks to the REAs who have pointed out you cannot. Why would you use your home as an ATM as there are so many examples of people who lost their homes to foreclosure/short-sale in the 2007 correction?
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September 11 2013
No, but your Loan Officer should have offered you options for either a split premium, single pay PMI buyout, or LPMI. You can purchase out the PMI as high as 95% LTV.
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September 11 2013
Unfortunately no, your loan-to-value ratio is based on the lower of the appraised value or purchase price.
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September 10 2013
 
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