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hemsleysue · Joined: 13 Sep 2009 Posts: 72 0.02 Dollars($)

Can we Avoid Mortgage Insurance Using a Gift of Equity?

gmakerley · Posted: Tue Sep 29, 2009 7:51 am Post subject:

as long as the loan amount is 80% or less of the sales price/appraised value, yes you can.

for example, if you're selling for $100K and the appraised value is also $100K, the maximum loan amount to avoid mortgage insurance is $80K.

keep in mind, this is for Conventional loans only. you cannot avoid mortgage insurance on an fha loan.

eric1 · Posted: Tue Sep 29, 2009 9:31 am Post subject:

Something to be mindful of is that many lenders put a cap on the amount that can be gifted.

gmakerley · Posted: Tue Sep 29, 2009 9:35 am Post subject:

i never heard of that before, eric. what do you know about it?

annyb27 · Joined: 07 Jul 2009 Posts: 144 -1.08 Dollars($)

is there any such incident happens that lender put cap on gifted value?

leeelliot61 · Joined: 13 Sep 2009 Posts: 188 0.01 Dollars($)

You can avoid mortgage insurance if the loan amount is 80% of property value or less.

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