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I want to purchase my mother's house for 50% of FMV with zero downpayment. Do I need get PMI ?

  • April 18 2012 - Fort Lauderdale
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Answers (5)

Profile picture for shapiroamg
Any lender helping you out should have a gift letter that you fill out and have you and your mom sign.
  • April 19 2012
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What will be needed by your lender is a signed and dated letter from your mother stating she is gifting you 50% of the appraised value of the home towards down payment.  The letter should also state her relationship to you and that there is no obligation for repayment of the gift.
To be safe you may want to check with an accountant to see if there will be any tax liability for either one of you.

I only lend in New Mexico

  • April 19 2012
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You need a purchase contract with the purchase price at the FMV and then you need a letter from your mother stating she is gifting you the 50% equity.

  • April 19 2012
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Profile picture for user9326961
Yes that's the idea....50% its a gift ....So what documentation do I need to sshow the bank?
  • April 18 2012
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If she is going to give you the equity as a gift then you will not need mortgage insurance.  If the purchase price is 50% of the full market value then you will still need funds to put down to avoid mortgage insurance.

 

I only lend in Florida!

  • April 18 2012
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