LTV Question

pattyplum
Contributions:114

If I purchase a home that is listed for x dollars, valued at a higher amount, and purchased for less than the list price (making it about 78% of the estimated value), how likely is it that the appraisal will reflect the estimated price? And, if it does, would the bank drop the mortgage insurance requirement?

Also, if my spouse owns our current home (bought pre-marriage; titled only to him), but won't be on the new mortgage because he is self-employed and alt-doc loans are too scary, can I still use money from the sale of our current house for down payment, closing costs, etc.? Is there a cap on this? Would this be considered a gift? And, does anyone know what the tax implications for him would be?

Thanks in advance for any help you may be able to offer!

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September 24 2007 - US

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Replies (3)

Dave Mason, "DebtFreeDave"
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The bank most likely will go off of the contract price. At least this has been my experience. If you have any other questions please let me know.

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October 03 2007

Vincent Towne, "Countrywide2008"
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If your home is under 80% ltv, meaning the home appraises for 100,000 and you owe 80,000. With my company, if your a current customer, all your have to do is get an appraisal done to prove the home has an 80% or less ltv to get PMI removed. If not, refinance into another loan.

You can always use proceeds from the sale of a property for a down payment. For tax issues, contact a tax consultant.
Mortgage Consultants are not Tax advisors.

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October 07 2007

Moderator JoVeg j_10
Contributions:319

pattyplum -

Hi Patty! Welcome to the Zillow Financing Forum!

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