Do you pay PMI if price paid is 20% less than appraisal valu

by ainge » Sat Oct 03, 2009 06:36 am
Posts: 1
Joined: 03 Oct 2009

If I purchase a house for $105,000 and it is appraised for $138,000, that gives me a $33,000 equity in the property at purchase. 20% of the purchase price is $21,000 and 20% of the appraised value is $27,600. If I do not put any money down and receive a VHDA loan for $105,000, would I have to pay PMI since I'll have $33,000 in equity at the time of purchase? In case it matters, I live in Virginia. The property is a townhouse as well.

Total Comments: 3

Posted: Sat Oct 03, 2009 01:05 pm Post Subject:

This would be up to the mortgage company. Typcially PMI can be removed if your loan balance is 80% or less than the appraised value. Check with them.

Posted: Sat Oct 03, 2009 01:35 pm Post Subject:

nm

Posted: Sun Oct 04, 2009 01:27 pm Post Subject:

nm

huh :? huh

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