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| *Ostroff, Fair and Company>>>Renting & Real Estate |
Do ALL FHA loans require mortgage insurance? |
I'm looking into refinancing my home to get out of an adjustable rate and I've received two good faith estimates. Both for FHA loans. It's a 95% loan and one company says they can get me the loan without mortgage insurance and the other says it's a requirement. Yes all FHA loans have mortgage insurance. Source(s): http://www.fhaloan.com/mortgage_insuranc... (FHA MI information) The loan will have mortgage insurance. You can take a higher interest rate and have the lender pay it up front. Or you can add it to your loan amount and finance it over the life of the loan. Or you can pay it monthly with your mortgage payment and petition to have it removed once you think you have 20% equity. FHA loan ALWAYS have FHA mortgage insurance. That insurance is the basis for lender's claims against loss should the borrower default. A percentage of any subsequent loss is paid by the FHA to the lender and is why lenders will make loans to borrowers who may not qualify for conventional financing but can qualify for FHA financing which is a bit less stingent. There is an initiala premium that is financed as a part of the loan amount and monthly renewal payments that are included in the required monthly remittance 20+ years as a direct mortgage lender All fha loans over 80% loan to value require PMI.there are other loans available over 80%loan to value that do not require PMI, but they generaly carry a higher rate than FHA. direct lender. 23yrs in lending |
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