Profile picture for Jsamsock

I cant get PMI, because the owner will not have the title in there name for 90 days, any advice?

I found a house I really like, but it was a foreclosure, and the contractor has some type of deal where they are going to buy the house from the bank I guess and then on the same day do the settlement with me.  Since the title is not in there name for 90 days, the PMI companies are denying me.  I only have 10% and therefore need PMI, so I cant get the loan, do you have any ideas of what to do?  The only thing Ive heard of working so far is a FHA loan, but I would like to keep my conventional to avoid added costs with FHA.
Thanks,
John
  • March 09 2010 - Olney
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (3)

We are a community bank in Rockville MD and still offer 80-10-10s.  Sounds like the contractor is trying to avoid paying transfer and recordation taxes twice.  Would the contractor be open to transfer title fully into his name prior to selling it to you?
  • March 10 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Andrew is right, a good LO should be able to get this deal done. doing an 80/10/10 might be the easiest solution for you
  • March 09 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You need to find a good loan officer.  I don't lend in MD but I have personally closed 5 transactions similar to this and my company has closed well over 30.  Until Recently FHA was a complete and total no go on these types of transactions and I have yet to find a lender willing to close on them under FHA financing.

The key is the appraised value vs the purchase price.  If the appraisal is solid and you are qualified you should be able to get this done.
  • March 09 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.