U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-10-2015, 08:08 AM
 
4,546 posts, read 11,557,169 times
Reputation: 3068

Advertisements

Quote:
Originally Posted by momtothree View Post
I'm in the same boat as you and can refinance now to get rid of our PMI on our fha loan as we bought way below appraised value and sales are up in our area. But the catch for us is that we have to wait 12 months according to our loan officer. Seasoned is what they called it I think. So at the 12 month mark, I'm most definitely refinancing our loan.
Try a different lender and see if you can use market value after 6 months. Especially where rates are now.
Reply With Quote Quick reply to this message

 
Old 04-10-2015, 08:45 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,320 posts, read 17,538,176 times
Reputation: 22164
Why wouldn't there be gift tax consequences to this transaction between the buyer and seller?
Reply With Quote Quick reply to this message
 
Old 04-10-2015, 10:50 AM
 
12,404 posts, read 9,218,311 times
Reputation: 8868
Quote:
Originally Posted by Jkgourmet View Post
Why wouldn't there be gift tax consequences to this transaction between the buyer and seller?
Lifetime exemption is in the millions, I doubt it.
Reply With Quote Quick reply to this message
 
Old 04-16-2015, 10:42 AM
 
64 posts, read 153,157 times
Reputation: 100
Default Is your friend married?

If so, they could sell it to you for 178,000, and gift you 24000 in gifted equity, so your loan is for 150k. If you could come up with 8k down (possibly a tall order I realize) then you have 20% equity.

If your friend is single the gift tax kicks in at 14k so the math is harder to work out.

I did something very similar last year, but the house was only 95k, and the house was owned by my mom and 2 aunts, so we were nowhere close to gift tax amounts.
Reply With Quote Quick reply to this message
 
Old 04-25-2015, 06:03 AM
 
Location: Funkotron, MA
1,204 posts, read 2,909,999 times
Reputation: 1793
Thanks for the info everyone.

I'll hypothetically look into a seller's credit at closing and/or a cash gift so that by all appearances there is 20% down at the time of closing.

The bottom line I'm getting is that you do actually need to have 20% down for whatever the loan amount is even if well below the actual house value (if you want to avoid a PMI), correct?
Reply With Quote Quick reply to this message
 
Old 04-25-2015, 06:59 AM
 
12,404 posts, read 9,218,311 times
Reputation: 8868
Quote:
Originally Posted by raveabouttoast View Post
Thanks for the info everyone.

I'll hypothetically look into a seller's credit at closing and/or a cash gift so that by all appearances there is 20% down at the time of closing.

The bottom line I'm getting is that you do actually need to have 20% down for whatever the loan amount is even if well below the actual house value (if you want to avoid a PMI), correct?
IIRC, the seller gift method only works if it is an immediate family member. In other cases, simply get a loan that allows you to drop PMI after an appraisal shows that you have < 80% LTV. Some lenders allow it and some don't, so look at those terms when you shop for a loan.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top