U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
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 06-04-2009, 06:09 PM
 
14 posts, read 246,454 times
Reputation: 17

Advertisements

My FH and I recently went through the process of trying to buy our first home. We were approved, and subsequently got all our paperwork done. Met with the coop board for our interview and got approved for moving in. We also got the loan commitment letter stating they would finance 90% of the purchase price. (We put down 10% knowing we would pay PMI, which was estimated at about $130-140 a month.) We recently found out from our loan officer that now we are not able to get PMI because apparently the companies didn't like the building. Now we're not sure what else do to, even after asking the LO if there were any other MI companies that would take us on, and he said that 2 out of the 3 companies denied us, and the third might do the same...

Is this common? Is there really only 3 companies in the whole country that issue PMI? Maybe I don't understand how this works, but is there a way around this?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 06-04-2009, 06:24 PM
 
341 posts, read 1,411,131 times
Reputation: 254
is the building eligible to go FHA?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-04-2009, 06:55 PM
 
14 posts, read 246,454 times
Reputation: 17
How do I find that out?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 05:12 AM
 
26,590 posts, read 56,716,534 times
Reputation: 13073
Unless something has changed, FHA doesn't lend on co-ops.

That said, if the PMI companies are having a problem with the co-op, it might be a red flag that there is a problem either with teh building or the financials. It could be that they've had an unsually high number of foreclosures in that building and feel that there might be an underlying problem there that is causing people to walk away.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 05:58 AM
 
14 posts, read 246,454 times
Reputation: 17
Okay. But what if I still want to purchase the apartment? What alternatives do I have at this point?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 06:11 AM
 
26,590 posts, read 56,716,534 times
Reputation: 13073
Find another 10% down to avoid PMI. See if the mortgage lender will do an 80/10/10. See if the seller will hold a 10% second. Get a gift for another 10%. Have your broker find out why the PMI company has a problem with teh property and what you can do to rectify the situation.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 09:41 AM
 
2,417 posts, read 4,713,564 times
Reputation: 4294
Not sure where you are but I've been keeping tabs on co-ops in my area in case something I can afford comes up.

I inquired with a few agents about 10% down buildings and was repeatedly told that even if the co-op board allows 10% down (not many here do), and all my ducks are perfectly lined up that getting PMI will be next to impossible.

Sorry to hear that you hit such a snag. Good luck to you!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 10:04 AM
 
14 posts, read 246,454 times
Reputation: 17
Thanks annerk. cleasach I'm in Brooklyn, NY. Our lawyer is wondering why this lender decided to tell us about the PMI so late in the game. We got all our paperwork in order. We got the loan commitment. We got the board approval. This is the one piece he held out on.

Had we known months ago that PMI was going to be an issue, we would've tried to figure out some other avenue. Now we're weeks away from our deadline to close, scrambling to do something before everything falls apart.

And legally, I don't even know what type of recourse I have. Thankfully we made sure that worse case we get our deposit back. And our lawyer helped by giving us some leads for other lenders, (which means we'd have to do the entire loan application process over).

But why did this guy even let us get to this point? That's one thing I really don't understand. Is this normal?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 10:06 AM
 
2,417 posts, read 4,713,564 times
Reputation: 4294
Oh boy.... I'm in Brooklyn too...

I can only wish you well in your situation. Ugh.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 06-05-2009, 10:15 AM
 
14 posts, read 246,454 times
Reputation: 17
Thanks cleasach. At least you got the warning ahead of time. This guy never even said anything until the day AFTER we found out we got approved by the board, when we called to ask to lock in our rate... This is so stressful.
Rate this post positively 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.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - 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, 36, 37 - Top