Is PMI on a FHA loan tax deductible in 2012?
We'll be buying a house under an FHA loan because the interest rate is smoking, but we'll have a PMI for the entire 30 years (even so, it'll cheaper than using a conventional loan). We were wondering if PMI will be tax deductible in 2012? Thanks!
- card-ronLv 78 years agoBest Answer
As of right now, the deduction for PMI expires with the 2011 tax year. Whether or not Congress renews the deduction for 2012 and beyond is anyone's guess.
- Bostonian In MOLv 78 years ago
FHA loans don't have PMI, they have MIP. There's a difference. MIP is a single payment insurance premium that you can finance or pay at closing in cash. See the instructions for Schedule A to see how MIP is handled if Congress decides to extend it to tax year 2012 or beyond.
- prattsLv 43 years ago
With FHA loans they're going to constantly have PMI via actuality it particularly is backed by applying way of the authorities so as that they % to guard themselves. With a typical very own loan particular as immediately as you attain 80% LTV they're going to drop your PMI. the financial agency in lots of circumstances demands which you wait a million 365 days in the previous getting a sparkling appraisal to show which you're shrink than 80%.