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Answers (5)
- Nic Netherton, "Colorado Lender"
- Contributions:7219
-Owners carry situations can also be tricky and most times are designed to benefit the seller more than the buyer. Have you not recieved the rental income on the investment property long enough to use it to offset the payment? Why is your partner not able to take it out of you name yet?
What part of Denver are you looking in? What is the reason you are interested in a condo?
What part of Denver are you looking in? What is the reason you are interested in a condo?
- user123392
- Contributions:4
Thank you for the answers, they have helped a lot.
I am looking at doing an owner carry on a condo for about 6-9 months and then refinancing into a conventional loan. (I can't do a conventional loan until I am refianced off an investment property by my partner in Mid May or so).
The property would probably be around 90% LTV, and my DTI would be around 42% if I could buyout mortgage insurnace, but would push the limits if I couldn't. Credit score at 700 or so. Does it sound like a possibilty or should I avoid altogether? I know condos can be more difficult than homes.
I am looking at doing an owner carry on a condo for about 6-9 months and then refinancing into a conventional loan. (I can't do a conventional loan until I am refianced off an investment property by my partner in Mid May or so).
The property would probably be around 90% LTV, and my DTI would be around 42% if I could buyout mortgage insurnace, but would push the limits if I couldn't. Credit score at 700 or so. Does it sound like a possibilty or should I avoid altogether? I know condos can be more difficult than homes.
- Christian Durland, "Christian Durland"
- Contributions:12
The final cost of the Single Premium option (MI Buyout) will be determined by loan-to-value, credit score, your debt-to-income ratios, and loan term (i.e. 30 yr, 20 yr, 15yr). Some MI Companies accept credit scores as low as 620, however there are numerous PMI companies....I/we work with the best priced and most competitive priced MI Company in the nation...not every bank and/or Mortgage Banker/Broker have the luxury of working with this particular MI Company...please contact me if you would like quote, or would like to learn more about the Single Premium option.
Also, there are other options like a Split Premium which allows your to pay a portion upfront and then carry a lower monthly amount....you can also finance the entire Single Premium if you would like, and/or ask the seller of the property (if your purchasing a home to pay for the buyout. When it comes to paying for the MI there's a lot of options, and it's all about considering any and all options and making a decision as to what best fits for your situation. As mentioned, please contact me if you would like to discuss further
Also, there are other options like a Split Premium which allows your to pay a portion upfront and then carry a lower monthly amount....you can also finance the entire Single Premium if you would like, and/or ask the seller of the property (if your purchasing a home to pay for the buyout. When it comes to paying for the MI there's a lot of options, and it's all about considering any and all options and making a decision as to what best fits for your situation. As mentioned, please contact me if you would like to discuss further
- Greg Von Herzen, GRI,MCNE, "vhproperties"
- Contributions:1427
Look up the terms of the actual MI on your loan docs. It will have the instructions for MI cancellation. It can be done by appraisal if the property has appreciated. They may require a full appraisal. If not, it will usually be dropped off of your loan at 78% of value when it's originally scheduled to reach that point in the amortization of the loan.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
user123- Your DTI and credit score play a factor in how much the premium to pay for the PMI in s single premium upfront. A 740 FICO is NOT required to to do this. And no a 40% DTI is not required.
The cost to buy it out is determined by which MI company your loan officer is using combined with the other factors you have mentioned. If you would like a second opinion on your scenario I would be happy to help, just send me a message and I will follow up with you.
The cost to buy it out is determined by which MI company your loan officer is using combined with the other factors you have mentioned. If you would like a second opinion on your scenario I would be happy to help, just send me a message and I will follow up with you.
PMI Buyout
To qualify to buyout of PMI, do you have to have a certain credit score, DTI, or both?
I had a lender say to buyout of a mortgage at 90% LTV you would need a 740 credit score. Another one said you cannot buyout of mortgage insurance unless you have under a 40% DTI. Is this correct?
Additionally, what is the cost to buyout (as a % of the loan, I assume)?
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