Profile picture for anuprn

single premium PMI

Can the single premium PMI be financed to loan amount on a 'Purchase ' transaction? My lender says , if it is added to the loan amount, it will reduce LTV based on the home's salesprice and hence can not be done. Is it correct?
If that's the case financed single PMI is available only for refinancing trasnactions?
  • May 19 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (4)

Pretty sure Single Pay policy will not count toward the qualifying Loan To Value.
  • May 19 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Yes it is possible.  The factor that your premium is based on is based on the initial LTV. However the LTV after the premium is added in needs to fit with the the programs guidelines. For example if you put 7% down your LTV would be 93%. A typical factor for Single Premium is 2.15% so your Final LTV would be 95.15% and over the basic conforming guidelines. In that case you would need to put an extra .15% down.

  • May 20 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Another option is allowing the lender to pay for it via a lender credit.  At a higher interest rate this can be done...and it is done often.  This does not affect the LTV, but it does (of course) affect the interest rate and resulting payment.  It is almost always preferable to the "old fashioned" monthly premium. 
  • May 21 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You should be able to roll in your single premium, up to 97% of the purchase price. FNMA allows this. You would need to check with your lender to see if they will. Some will and some won't. Let me know how I can help.
  • May 21 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.