Mortgage Insurance Using a Gift of Equity

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.

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

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

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

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