Lender won't drop PMI (loan, escrow, real estate, foreclosure)

[ripsterone]

I bought a Hud foreclosure house last Feb for $94,000 . Being a Union Carpenter I redid the entire inside of the house before I moved in with new drywall, interior and exterior doors, trim, oak stairs and rails, new bathroom sinks and toilets, electrical outlets and switches and light fixtures.
In June I went to refi the loan but after getting the run around by a sub prime lender Novastar, I decided to got with a signature from my credit union for $16,000 for landscape and exterior work. Novastar had and appraisal done and it came out to be $145,000 before any work was done outside.
I sent my appraisal to my current mortgage company Amcore to drop my PMI, because they told me that I could still use it since it was less than a year old. And they sent a letter back stating they would not drop my PMI because I didn't do any Structural upgrade to the house.
Has anyone ever heard of this before?

[renriq02]

yes....it's very common for the lender not to drop the PMI due to structural improvements like new rooms or new sq footage.

they also may not want to drop it due to declining areas.

Originally Posted by ripsterone

I bought a Hud foreclosure house last Feb for $94,000 . Being a Union Carpenter I redid the entire inside of the house before I moved in with new drywall, interior and exterior doors, trim, oak stairs and rails, new bathroom sinks and toilets, electrical outlets and switches and light fixtures.
In June I went to refi the loan but after getting the run around by a sub prime lender Novastar, I decided to got with a signature from my credit union for $16,000 for landscape and exterior work. Novastar had and appraisal done and it came out to be $145,000 before any work was done outside.
I sent my appraisal to my current mortgage company Amcore to drop my PMI, because they told me that I could still use it since it was less than a year old. And they sent a letter back stating they would not drop my PMI because I didn't do any Structural upgrade to the house.
Has anyone ever heard of this before?

[ripsterone]

If I did a refi do you think they would require PMI still. The reason is because they did a analysis on my escrow and said it would be short for this year, even though none of the stuff in my escrow has been raised. So they raised my escrow payment up $80.00. And my PMI payment is $95.00. If I get it dropped my payment will be $175 less. Then I could add the $16,000 signature loan to the mortgage for almost the original payment.

[renriq02]

Well if you post your loan amounts....rates...credit score...approximate value.

I will tell you where the current market is..and you can decide from there.

Also, are you going to be going full documentation? are you self employed? do you receive hourly? salary? etc. What state are you in?

Originally Posted by ripsterone

If I did a refi do you think they would require PMI still. The reason is because they did a analysis on my escrow and said it would be short for this year, even though none of the stuff in my escrow has been raised. So they raised my escrow payment up $80.00. And my PMI payment is $95.00. If I get it dropped my payment will be $175 less. Then I could add the $16,000 signature loan to the mortgage for almost the original payment.

[desertsun41]

Collecting that fat white Elephant called PMI is very very profitable for the very corrupt lenders. Some lenders will drop it if and only if you call them and go through the red tape. Yet others have their own unregulated rule where they just will not remove PMI during the first year under any circumstances.

Having bought many many homes to flip I have seen lots of different kinds of sales and listings. I have found that HUD sales are grossly overpriced. They are almost always a dump that need many many thousands of dollars to bring up to code. Yet the listing starting bid price is dead on retail price. Right in line with all the other simular sized red ribbon listings. I know, I bid low on many of them and in the end saw them sell for better then starting bid. Lota dummies out there.

Anyway, I can send you to the right place to get your answer and an answer that you can trust. I will not look up the exact site for you but go and google
"Bob Bruss remove PMI" key words. This man has taught me everything over the past 30 years. He has a syndicated Real Estate column that he has run in most newspapers across the country for more then 30 years.

Just go get a new first on the house. The mortgage lenders are starving a slow death out there in this market. They are hungry for your business. May I recomend a Mortgage Broker and NOT NOT NOT a Mortgage lender.

Good luck to you my friend

[ripsterone]

The Pay of amount is $94.213
Siq loan amount is $14,956
current rate is 6.5%
My credit score is about 690 to 700
And the Value when appraisal was done in july was $145,000 but I have done three tier retainer walls around the house and drive, painted the house and garage, installed new gutters and had all the trees trimmed and the dead ones cut down. So now maybe $150k to $160k.
I live in Illinois
Most of the houses on my block range for $150k to $190k

[renriq02]

you should get around 5.5%-5.625% 30yr fixed.
You will need to get 70% loan-to-value or lower to avoid getting any refinance cashout hits. This can take your rate to 5.75-5.875
and you would get charged 1% origination fee.

Originally Posted by ripsterone

The Pay of amount is $94.213
Siq loan amount is $14,956
current rate is 6.5%
My credit score is about 690 to 700
And the Value when appraisal was done in july was $145,000 but I have done three tier retainer walls around the house and drive, painted the house and garage, installed new gutters and had all the trees trimmed and the dead ones cut down. So now maybe $150k to $160k.
I live in Illinois
Most of the houses on my block range for $150k to $190k

[ripsterone]

Using a LTV calculator it says my LTV is 74% with the Mortgage and Signature loan. 63.3% with out the Signature loan. Can I refi with out the Sig. loan?

[renriq02]

you can....but how high is the rate on your sign loan?
is it tax deductible?

Originally Posted by ripsterone

Using a LTV calculator it says my LTV is 74% with the Mortgage and Signature loan. 63.3% with out the Signature loan. Can I refi with out the Sig. loan?

[ripsterone]

The rate is 7.5% and I think it is tax deductible. Just trying to come out with a lower mortgage payment.