do you have to pay PMI on your mortgage with and FHA loan and 3% down?
- HamletteLv 61 decade agoFavorite Answer
Yes. The only way you can get out of mortgage insurance is by putting down 20% or more. In addition, mortgage insurance for an FHA loan is typically more expensive than insurance for a conventional loan.
- 1 decade ago
You have to pay PMI on an FHA mortgage regardless of how much you put down. On an FHA 30 YR fixed you will always start out with PMI. Actually called MIP on FHA loans. Its how the FHA funds more loans to others. If you want to get rid of PMI there are a couple ways. First put 20% down and use a conventional loan. The other way is to find a lender that does a Tax Advantage Mortgage insurand program where you pay a little higher interest rate instead of PMI. The Preferred answer lender Quicken Loans does these with good credit, or you can also try Countrywide, or Bank of America. Typically brokerage houses won't want you to do these, because they take away the reason that a broker has to refinance you later.
- Ron BerueLv 61 decade ago
PMI is not removed until the loan is paid down to 79% of the mortgage. THEN YOU MUST be the one to notify the lender.
**STAY TUNED: There is talk about revising those guidelinnes, too.
BUT there's nothing stopping you from going to a legitimate lender to get pre-qualified and approved. The loan officer should be able to clear the air of any Qs you might have.
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- MIND THE GAPPLv 51 decade ago
ALL FHA loans have mortgage insurance that CAN NOT be canceled no matter what the loan to value ratio is.