Is there a way to avoid FHA PMI on a 15-year FRM?

As stated... the only way is to finance 78% or less of the home's value.. You can also go Conventional, and with 20% down, not pay any mortgage insurance.. up front or monthly... 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

Yes. If your loan-to-value (LTV) is 78% or less, you are not charged for Annual MIP on a FHA 15 year FRM. If your LTV is greater than 78% but below 89.99%, you will have a reduced Annual MIP. FHA still requires you to pay the UFMIP (Upfront Mortgage Insurance Premium), however it is a reduced rate of 1% (compared to 30 Year FRM at 1.75%) of the amount financed. I hope this answers your question and I am always happy to answer any additional questions.

The FHA rules are stated by others already. On a conventional loan, it is possible to pre-pay the PMI by financing it or prepaying it at closing so that there is never a monthly payment. The cost varies based primarly on the loan amount as compared to the current appraised value (LTV) and credit score, and the loan term (15 years) affects the cost as well. If you have a strong credit score the cost is much less than FHA. pdumouchel@primelending.com or 843-619-6025