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Mortgage Insurance Using a Gift of Equity

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Icon Mini Profile hemsleysue





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Post Posted: Tue Sep 29, 2009 6:36 am    Post subject: Mortgage Insurance Using a Gift of Equity
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Can we Avoid Mortgage Insurance Using a Gift of Equity?
Icon Mini Profile gmakerley
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Post Posted: Tue Sep 29, 2009 7:51 am    Post subject:
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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.

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Icon Mini Profile eric1
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Post Posted: Tue Sep 29, 2009 9:31 am    Post subject:
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Something to be mindful of is that many lenders put a cap on the amount that can be gifted.
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Icon Mini Profile gmakerley
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Post Posted: Tue Sep 29, 2009 9:35 am    Post subject:
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i never heard of that before, eric. what do you know about it?
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Icon Mini Profile annyb27





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Post Posted: Thu Oct 01, 2009 11:57 am    Post subject:
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is there any such incident happens that lender put cap on gifted value?
Icon Mini Profile leeelliot61





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Post Posted: Mon Oct 05, 2009 6:00 am    Post subject:
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You can avoid mortgage insurance if the loan amount is 80% of property value or less.
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