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Author: gol6090 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127262  
Subject: Re: question: down payment on my first home Date: 5/14/2013 11:30 PM
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I find this thread very interesting since I am going through a similar situation. I am about to buy a property and I do plan to live there, but I travel a lot for work.... so what happens if I need to move to another country for a few months just 3 days after I purchase the property? In my job there is a high probability of that happening. And it would be short-sighted from the lender not to allow me to rent it under those conditions. My goal is to live there, yes, but if I'm out of town, I should not be forced to lose money simply "cuz I just bought it".

Also, how can you get no PMI with only 5% down?? That surely caught my eye. As per my lender, conventional mortgage loans require at least 20% down in order to avoid PMI. Is there a specific type of loan that has this "5% down gets rid of PMI" characteristic? Or is this "20% down or PMI" story the typical lender scam?

By the way, PMI is evidently a scam in itself born out of greed and banks making the rules. Why pay mortgage insurance? If i stop paying the mortgage they get my house, keep my down payment and kill my credit. Isn't that enough?

Moreover, when you talk about the form 1003 where you are required to say that "you intend to move to your new property within 30 days".... well yes I do intend to do so, but with my luck I could get fired or demoted the day after signing that 1003 form and I cant move into the new house even if i have all the best intentions to do so... So what happens then? what are my options? Do I have to stop eating to pay the mortgage, or else risk pulverizing my hard earned credit and be foreclosed?

Finally, do you have to sign something that specifically says that "you cannot rent for a year"? If so, it occurs to me that you could cross out that part and put your initials there (that's how you legally modify a document). I've done that with non-compete and IP agreements in employment contracts which are obviously abusive and outrageous and are illegal in most countries. Not happy with paying miserable salaries that never grow and provide the most unfair employee-exec salary ratio in history, they want to own your ideas as well!!
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