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Is a refi to a conventional loan possible?

I closed on a new home on 12/3/08.  Purchase price on the home was $260,400 and I put 3% down on an FHA loan at 6%.  The house appraised for $335,000 last week and the current loan balance is $256,000.  Are there any lenders that will use the appraised value rather than the purchase price since I've been in the home for less than 6 months?  I'd love to lower my interest rate and get rid of PMI.  Thanks!
  • April 17 2009 - Northwest Raleigh
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Answers (5)

Who did the appraisal?
Why did the values increase? Did you buy it from a motivated seller? Did you make any improvements?
You could do an 80LTV refinance with the costs out of pocket or rolled in.


  • April 17 2009
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Paul Cassidy--a state certified real estate appraiser conducted the appraisal.  The house increased in value because I purchased it at a huge discount from the builder who had it sitting in inventory as one of the last three houses in the neighborhood. 

We've about $5,000 in improvements since we moved into the house. 

I'd be happy to discuss over the phone if you have any other thoughts.

Thanks!
  • April 17 2009
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BG,

I don't know of a lender that will use value above purchase price during the first 12 months of ownership. Regardless of a higher appraised value. .... Good luck, Rudi
  • April 17 2009
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Conventional financing does not have title seasoning. Meaning, you can use the appraised value provided justification for the increase in value is legitimate and documented. FHA does have a 12 months seasoning to use appraised value, but Conv lending does not. I would love to help, but in Texas.
  • April 17 2009
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With no seasoning requirements on conventional you wonder why they don't go off the higher or the two values on a purchase? I understand, but maybe this will change with the new HVCC appraisal requirements. At least ease it up if someone puts down 15% of the purchase price. I don't see any harm then.
  • April 18 2009
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