Posts

Using PMI To WAIVE Appraisal Contingencies

/in ,
Many homebuyers do not realize that PMI can be an option for those who might want to make offers with no appraisal contingencies. This, of course, is a great idea, but with a HUGE CAVEAT: BEWARE OF JUMBO! PMI is always a great way to cover appraisal shortfalls on the conforming front. Example: Borrower intends […]Read More

How To Use Single Premium/Lump Sum PMI To Cover Appraisal Shortfalls

/in , ,
Recently, I blogged about why Private Mortgage Insurance is “Awesome,” pointing out why its stigma from the 1990s is so underserved. One of the many benefits of PMI is using it to help cover appraisal shortfalls, and I wanted to elaborate on that in this blog. $900,000 PURCHASE APPRAISES $100,000 UNDER Assume the following: Purchase […]Read More

Covering Appraisal Shortfalls

/in ,
Whenever the market heats up like this, particularly in the springtime, appraisals invariably come in low. This is simply because there are often no closed comparable sales (comps) that even come close to supporting current contract prices, especially when there are bidding wars. REMINDER: Appraisers can only use comps that close prior to the appraiser’s […]Read More