Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

do you have to pay PMI on your mortgage with and FHA loan and 3% down?

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  • 1 decade ago
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    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.

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  • 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.

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  • 1 decade ago

    ABSOLUTELY!

    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.

    Thanks for asking your Q! I enjoyed answering it!

    VTY,

    Ron Berue

    Yes, that is my real last name!

    Source(s): My wonderful family! In the real estate business over 34 years in PA My wonderful coaches and mentors! Yes, after all these years, I continue having them in my corner. THE ABSOLUTE BEST, MOST WONDERFUL real estate investment group in the world, which I was very proud to be a member of! "THE University of Hard Knocks"
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  • 1 decade ago

    ALL FHA loans have mortgage insurance that CAN NOT be canceled no matter what the loan to value ratio is.

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