PMI
Hi,
I am a newbie investor and I have a question for your mortgage bankers out there. Is the PMI cut-off different for investment properties than for my own personal mortgage? I thought PMI was not required once you reached 20% equity whether for investment property or for your own residential property...can somebody who knows the definitive answer to this let me know? Thx very much! :-?
Well depends... PMI on 80% LTV is only good for Fannie/Freddie ("CONFORMING"
loans. All other loans, Non Conforming, make their own guidelines. Since most non owner occupieds above 80% LTV are non conforming anyways, you will have to ask lender by lender what their guidelines are for PMI on non owner occupied.
most of the time PMI is mute under 80% ltv period. I dont have a single non-conforming lender in my dockets that has a pmi even over 80%.
So pmi should not matter in most NOO deals.
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PMI can only be charged when the loan amount is over 80%of the appraised value or the sales price which ever is lower. That is on all programs, that would require PMI. That is a definately answer.
Lori
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