I heard that FHA loans changed and now PMI is charged for the lifetime of the loan and not just until reaching 20%. Is there absolutely no way to waive this? Don't have 20% saved up yet for a down payment but I really don't want to pay PMI for the lifetime of the loan... by Ryan1Rob from Springfield, Virginia. May 30th 2013
For case numbers issued on or after June 4th 2013, the MI will be for the life of the loan. the only way to eliminate it would be to refinance or payoff your loan. If your looking to purchase a home now, and you already have an accepted contract and your loan packet has been submitted, then your lender can order the case number and you would fall under the current guidelines, not the new changes... however if you go past June 4th, then consider going conventional rather than FHA... the rate will be slightly higher, and the MI will be slightly lower, so your payment could be about the same.. however under conventional MI, you can cancel it after 2 years if you can establish / prove you have 20% or more in equity.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
THere are some lenders out there that have lender paid PMI the rate is slightly higher but the loan is considered a conventional loan. if you would like more information please give us a call 847-885-2020 ask for Dan. Maybe we can help
FHA Mortgagee Letter 2013-04 outlines all the current regulations regarding MIP (Mortgage Insurance Premium). Unfortunately, there is no way to avoid paying MIP on the 30 Year loan program. The 15 Year loan program does allow for MIP to fall off once certain LTV levels are achieved. The Conventional program does have monthly Mortgage Insurance on any LTV of 80% or higher, but you can increase the rate to cover that cost or if there is enough Seller Concessions on the contract it can be paid with that.
FHA rates are 5 point better than conventional you can go 96.5% on FHA and 95% and roll in PMI one time fee to 97%, so in saying that conventional is the way to go since little higher rate and lower PMI fee's in general are a better deal than FHA.
LIke the others have stated, just go with a conventional loan and you could also but a Home Path loan to 97% with No MI and NO Appraisal and only need a 660 Fico..
As the others have mentioned, the FHA Mortgage Insurance is going to be permanent on all FHA 30 year loans which are put into the FHA system beginning next week. I am also of the opinion that going with a conventional mortgage would be a much better program, and only takes a 5% down payment. Then the conventional mortgage insurance would be on the loan, but it would be less per month, and would drop off at the 78% LTV position on the loan.
Conventional loans will allow upfront MIP instead of monthly mortgage insurance premiums. The amount depends on a few factors, namely LTV, Credit Score & DTI. You can save a ton with an upfront premium in many cases. If you have a specific scenario in mind I can give you a good idea on the pros & cons of Conventional vs FHA to see which would be the best fit. Feel free to email me @ thoward@mtgcapital.com.
All FHA loans have PMI, regardless of down payment. There are cheaper PMI alternatives with a conventional loan. On conventional loans, PMI is based on down payment, and the overall client picture. So the more you put down, and the better your credit, the cheaper PMI. There are other alternatives live Single Premium PMI, and even LPMI (Lender paid mortgage insurance). For a large number of reasons, what was popular not too many years ago, an 80/10/10 loan, is still available, but much harder to obtain. Talk to a local mortgage broker for more details and options.
Even with MMI on FHA loans, your "combined rate", (interest rate plus MMI), is lower than the historical baseline of 6% for mortgage loans. Act promptly, before property values and interest rates go up.
Lender paid MI programs are available
Sorry my friend but there is no way of getting around paying PMI on FHA Loans. But there are other alternatives such as the ones that have already been stated. I am Branch Manager close to your area. Feel free to email me at: jcherry@loansimple.com, or call me at 804-556-0685.
Save just a little more in order to put at least 5% down and you can go with a Conventional loan. You will still pay PMI, but not for the life of the loan. FHA just isn't appealing any longer, unless you have low credit scores or some of the other underwriting flexibilities that FHA allows.
We have purchase loans with 3% down for a conventional loan.
Yes, FHA in June, will require all FHA loans newly originated starting in June to have mortgage insurance for the life of the loan-The best way is to put between 3-5% down and go conventional with mortgage insurance- You then can have the mortgage insurance taken off once you have equity of 22% or greater-Hope this helps,Pete
Ryan, what is the reason you want an FHA loan? There are some other loan programs available that allow you to achieve your objective.You can call me at 561-859-7363 or email me at choskins@heritagefinancial.com.Thanks, Calvanaugh Hoskins
Technically FHA insured mortgages don't have PMI( private mortgage insurance), they have a MIP (mortgage insurance premium). Same letters 2 separate things. A conventional loan would be the quickest way to get in your new home as many have suggested. Moreover PMI is generally cheaper than MIP if you're scores are above 680. We cover the state of Virginia and would be glad to offer you a comprehensive quote. Good luck!
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