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Old 09-19-2011, 03:48 PM
 
Location: DC Metro
21 posts, read 65,191 times
Reputation: 16

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I'm purchasing a condo, and the lender is requiring that the dwelling coverage (replacement cost) on my HO-6 is at least 20% of the appraisal value. I honestly do not want that much coverage (I know many people would disagree), but I really wasn't expecting to need that much coverage, and thus, my premium is a lot higher than I wanted.

Is this 20% minimum required with most mortgage lenders?
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Old 09-21-2011, 10:30 PM
 
1 posts, read 2,179 times
Reputation: 10
Yes it is..That is a Fannie Mae/Freddie Mac requirement. HO-6 or "walls in" coverage must be at least 20% of the appraised value.

I know this because I am a Senior Mortgage Consultant and every Condo loan now requires this. If you bought your condo before and are now refinancing it will be something new you will have to pay for.
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