Silly LTV question....

[Anonymous]

I thought with FHA, your LTV goes by the contracted selling price, not the appraisal amount.  So you would figure out your %'s using the contracted selling price when determining if you're going to be paying mortgage insurance.

[Anonymous]

So you're not paying any closing costs at all?  Your numbers only add up to your purchase price of $214,000, what about your closing costs.

[PixieQueen80]

I don't have any closing costs that are out of pocket because of the $10,000 closing cost monies received through my Bond loan.  Also in DC the seller pays a required portion.  The only items I am paying for is inspection, appraisal and of course the initial deposit that I submitted with my contract which was $1000.00

[PixieQueen80]

---

@Anonymous wrote:

So you're not paying any closing costs at all?  Your numbers only add up to your purchase price of $214,000, what about your closing costs.

---

My error, just checked my loan documents and the loan amount is $149,379 not the original amount of $144,000 that I quoted.  The numbers should add up correctly now

[Walt_K]

Old thread but assume it still applies: http://ficoforums.myfico.com/t5/Mortgage-Loans/LTV-PMI-amp-Appraisals/m-p/257071/highlight/true#M158...

[Phitor]

---

@Walt_K wrote:

Old thread but assume it still applies: http://ficoforums.myfico.com/t5/Mortgage-Loans/LTV-PMI-amp-Appraisals/m-p/257071/highlight/true#M158...

---

Thanks. From that thread: "in calculating ltv, the bank will take the 'lower of' appraised value or contracted purchase price for value. you will not avoid pmi..... even if you buy a $1MM home for $100K and dont put anything down.... you will have pmi"

Unfortunately, that's how I thought ot worked.