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Tina Torres' Blog

By Tina Rebimbas Torres - Broker | Broker in Union, NJ

FHA - Now requires Mortgage Insurance to be PAID FOR THE LIFE OF THE LOAN...... No Longer 5 Years Minimum or 20% Equity.

Just wanted to confirm this new RIDICULOUS Information is Correct!!!

Now a buyer needs to pay this FEE for the Term of the Loan 30 Years.
Instead of the 5years.

Buyers will need to REFI when they feel they have 20% equity to get rid of the MIP payment.

either that or put at least 5% down to do a Convention Loan.
(1 Family Owner Occupied)


Just wanted to see if everyone is getting the same info from the Mortgage Compamies.

Comments

By Lee Gallman,  Wed May 22 2013, 11:02
Not true-There has always been a 3% conventional FNMA 97 loan and what is changing on 6/3/13 for FHA: The amount of time that the annual MIP is required to be paid is increasing. It will either be 11 years or for the life of the loan, depending on the loan term & amount of down payment (or amount of equity if a refinance).
For those who want to read the official rules from HUD (who oversees/administers FHA loans) you can find it at http://portal.hud.gov/huddoc/13-04ml.pdf
By Tina Rebimbas Torres - Broker,  Sun May 4 2014, 04:50
3% conventional? ?
Does that come with huge fees attached??

With conventional the rate is always higher, which is why people go with FHA.
is it true now the MIP has to be paid for the life of the loan....or till you refi?

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