Is it normal for an underwriter to require that I have condo insurance coverage at 20% of the appraised value of my condo? When I bought my place 3 years ago I didn't have a policy and I don't currently have one, but now that I'm trying to refinance this mortgage guy says I have to have it. The guy I'm working with works for BoA, but he seems kind of shady. The process has been going on for months and I'm not really sure what's taking so long. I already paid him the $400 loan application fee, or else I would drop him and go somewhere else. Advice?
Condo loans are very hard to get right now. Send me an email as a reminder and I will ask our investors about your scenario. I have worked with a bunch of people from the board. robert@buffingtonmortgage.com
Condo insurance is typically very inexpensive, so if they are requiring at 20% dwelling value you can typically get it for under $300-400 per year. It's my understanding that the majority of condo owners carry insurance on their condo. I can give you a quote for it if you want, my email address is todd.west@libertymutual.com
