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i'm buying a home for 330,000 with 30,000 down but when i sell my house i will have 50,000 more

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January 15 2009 - Downtown
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Profile picture for JB2003
Jaime has it right.  This is how I purchased my home.  Some people refer to it as piggy-back loans.  The first was conforming at 80% LTV the 2nd was at 10% LTV, it was at a higher interest rate but I had it paid off within the first year with no prepays.  Make sure you confirm the no prepay on the 2nd lien loan.  I did not have to carry PMI.
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January 29 2009
in regards to the pre-approval/pre-qualification  comment, that's pretty much gone to the wayside with current staffing levels with lenders. they don't have time to look at possibly doing a loan on someone who possibly has a house picked out.. 
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January 19 2009
gator, if you have less than 10% down, I wonder if you can qualify for another purchase. Your debt to income normally cannot exceed 45%. The lender on your new purchase loan will include your monthly obligation on your current home along with your other monthly obligations, plus your new mortgage loan payment. Get pre-approved before you sign a purchase agreement. Not pre-qualified - pre-approved!
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January 16 2009
Profile picture for Tina Rego
It depends on the type of loan, FHA requires 2 years of MI.  But you can refinance and take off the MI or if you have a first and second.  Make sure the second does not have a pre-payment penelty.  It would benifit you on having the higher interest.  Look carfully at your loan.
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January 16 2009
Actually it's the Lender's policy for the MI removal. You would think it would be very simple- some lenders do not flex very much! It would take an act of congress to get to that person to make the decission if it is not in writing in a formal policy. Most take the view, if you did not start out with 20% down - you fall into the written policy to remove if the request is prior to the principle reduction in the amortization schedule.

I have not explored in quite sometime- this is my experience from a couple of years ago.
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January 15 2009

A true principle reduction in a lump sum payment should allow PMI to be removed before a year has expired. If you use a combination of appreciation and principle reduction by payments 1 to 2 years will be needed.  I have had clients accomplish this in the past in this same situation.  As always it is a question to be asked of the PMI company.

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January 15 2009
Evening Carl- I agree with you on the second being difficult to find. However, remember a lot of lenders require a minimum of on time monthly payments, 12 - 24 months prior to being eligible to drop the MI.
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January 15 2009
If you obtain one loan at 90% LTV on the home you are purchasing you will have PMI on the loan with a great rate. If you make a principle reduction and bring the new loan to less than 80% LTV when you sell your current home you can have the PMI eliminated.  You will still have a great rate and no PMI.  You may find this an easier process than looking for a lender that can provide a second to 90% CLTV.  Good Luck
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January 15 2009
I just noticed - you are the same "op" as the "Bridge Loan" thread.

Jamie has the best solution for your transaction details.
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January 15 2009
Try to do a concurrent loan,  Two loans on the purchase.  75% first and 15% second lien, 10% down. Get the seller to pay for your closing cost.

When you sell your current home, pay off the second. The second will carry a high rate but you will hold it for a short period. (Make sure it does not have prepayments).
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January 15 2009
 
Related Questions
i'm buying a home for 330,000 with 30,000 down but when i sell my house i will have 50,000 more
Profile picture for JB2003
Latest answer by JB2003
January 29 2009 | 10 answers
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