Posted on: 08th Oct, 2010 08:01 pm
My Parents and I want to co-purchase a home. They are putting some cash down, and I want to take mortgage out for the rest. My first question is "it's possible to do this? "
My second question is "do I still need 20% of down payment (for the portion that I am responsible for) to avoid paying PMI?"
For example, if we are purchasing a home for $500k, then my parents put $200k down in cash. So I would get mortgage for $300k. Do I need $60k for the down payment ? (20% of $300k)
Thank you
My second question is "do I still need 20% of down payment (for the portion that I am responsible for) to avoid paying PMI?"
For example, if we are purchasing a home for $500k, then my parents put $200k down in cash. So I would get mortgage for $300k. Do I need $60k for the down payment ? (20% of $300k)
Thank you
Hi gueat,
Welcome to mortgagefit,
As your parents are planning to be co-borrower of your mortgage,it is surely possible to do this.
As per your second question is concerned ...........
As your parents are putting down some cash more than 20 % then you don't have to bother about putting your own money as down-payment because you and your parents will be considered as a single loan borrower by the bank.Go ahead with the deal.Best wishes.
Feel free to ask any further query if you have.
DIPA
Welcome to mortgagefit,
As your parents are planning to be co-borrower of your mortgage,it is surely possible to do this.
As per your second question is concerned ...........
As your parents are putting down some cash more than 20 % then you don't have to bother about putting your own money as down-payment because you and your parents will be considered as a single loan borrower by the bank.Go ahead with the deal.Best wishes.
Feel free to ask any further query if you have.
DIPA