Mortgage Insurance on a Fannie Mae Homestyle Loan
Hello All,
My family and I recently purchased and renovated a house in Birmingham, Al using the Fannie Mae Homestyle loan. I have to say this is an amazing loan, and have been very pleased with how smoothly everything has gone (including the renovations). We are finally moved in and loving every second of it!
Unfortunately, since I paid 5% down I have to pay mortgage insurance. Fortunately, the ARV (done by a 3rd party appraisal company on behalf of the lender) of the property gives me right at 20% equity in the property. This is really a conventional loan, and I was under the impression that once 80% LTV is reached that I can request that my PMI is dropped, and once 78% LTV is reached my lender is required to drop it.
My question is what is required to prove this to my lender. Obviously a refi (after any required seasoning period) would take care of the problem, but I want to avoid that if possible. It seemed that one of the benefits of this homestyle loan was that my lender would accept the appraisal of the property that they required as a basis to calculate LTV when it comes to mortgage insurance. Should I just try and order a new appraisal in a few months?
I am in communication with my lender, but didn't know if anyone else had any insight on this topic. Thanks in advance for the advice!
Sincerely,
Bobby Douglass