Question
How can the appraised value of a home be ok with a mortgage lender yet be too high for a PMI company?
The conventional mortgage with 90% ltv for a home I am buying next week has been approved by the mortgage company based on the appraisal the mortgage lender sent out however the PMI company believes the home is worth about $15000 less than the appraiser says it is worth. What gives? If this breaks the deal can I get my money back for the appraisal? ($395) The home is in Pike county, PA
3 weeks ago - 2 answers
Best Answer
Chosen by Asker
In my experience you are generally not able to recover the cost of the appraisal. But I would contact the lender and ask them what the next step is. There are several MI companies out there so they may be able to obtain coverage from another. This used to be unusual, but with the gun-shyness caused by the appraisal frauds a couple of years ago this might happen more often. Since this might get you out of the sales contract (unable to secure financing), you might see if the seller will come down some and perhaps you can come up with a little more down to get the down payment to 20%, thus not requiring PMI.
by OldJimmy
3 weeks ago
Asker's Rating: 
Other Answers
Why in the hell is the PMI saying anything in this transaction? I'd give the FTC a call to see if this is legal.
by Realtoratheart- 3 weeks ago