Home Buying in Miami>Question Details

Sarah, Home Buyer in Miami, FL

FHA- Im am purchasing a home for 170K with 30% down payment and credit score of 778,781,785 Do I still have to pay PMI?

Asked by Sarah, Miami, FL Tue Aug 3, 2010

I have to use FHA because of my low income of only $37,000 yearly, but with 30% down payment, Why do I have to pay PMI??

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Answers

15
This is a great question. Though I'm not a mortgage broker/lender, this is how I understand this, Sarah.

FHA has an upfront charge and a monthly charge as a way to curb their cost of doing business so to speak.

As a matter of fact, a new law recently passed takes effect on September 7, 2010 that in part, makes critical changes to these fees - and these will affect your qualification standards for an FHA loan.

If you are on the market to buy and are not already committed for an FHA loan, I strongly suggest you RUSH to your nearest loan and real estate professionals and get going.

The video on this link will (hopefully), explain why: http://www.thinkbigworksmall.com/mypage/archive/1/52542/

Luck, Is When Preparation Meets Opportunity.

ALL THE BEST
Web Reference: http://BuyMiamiBeach.Info
0 votes Thank Flag Link Wed Aug 11, 2010
This is a great question. Though I'm not a mortgage broker/lender, this is how I understand this, Sarah.

FHA has an upfront charge and a monthly charge as a way to curb their cost of doing business so to speak.

As a matter of fact, a new law recently passed takes effect on September 7, 2010 that in part, makes critical changes to these fees - and these will affect your qualification standards for an FHA loan.

If you are on the market to buy and are not already committed for an FHA loan, I strongly suggest you RUSH to your nearest loan and real estate professionals and get going.

The video on this link will (hopefully), explain why: http://www.thinkbigworksmall.com/mypage/archive/1/52542/

Luck, Is When Preparation Meets Opportunity.

ALL THE BEST
Web Reference: http://BuyMiamiBeach.Info
0 votes Thank Flag Link Wed Aug 11, 2010
good morning sarah...most homeowners, and homebuyers are of the same opion that you are about paying pmi...i have closed many fha loans, and what you have to remember is that if it were not for the fha loan opportunity..would you be able to purchase the home you want?......if the answer is no...then paying a small premium for the luxury of buying the home you want is worth it...right?....also...if you take the existing interest rates on a 30 year fixed fha loan, plus the small monthly mortgage insurance premium and compare them to the going rate on a 30 year conventional loan....they are roughly the same....the only real difference is the upfront mip....
i hope you enjoy your new home...
best regards...
bob mcclure
mortgage one
brighton, michigan
0 votes Thank Flag Link Wed Aug 4, 2010
You may not even need to buy via FHA. Conventional loans offer great interest as well. Have you located a house yet? Do you have a pre-approval from a banker?

Thanks ... Osmany
0 votes Thank Flag Link Tue Aug 3, 2010
There is no reason you have to use FHA just because of your income. If you qualify for all of the payments, you can go conventional. What are the taxes, HOA if any, and insurance? What are your other debts? If you need a co-signer, you just need someone who underwrites and sells to Freddie Mac instead of Fannie Mae.

Miguel, why are you asking your question, and why are you posting it 3 times? The purpose of this forum is for people to get their home buying related questions answered, and this certainly qualifies as that.
0 votes Thank Flag Link Tue Aug 3, 2010
In a word, YES! All FHA loans now have a PMI requirement, it is paid at closing.
0 votes Thank Flag Link Tue Aug 3, 2010
Sarah:
Why are you making this question in this forum?
Do you have an agent representing you in this transaction? If not them whatever the bank says is a requirement you have to follow.
0 votes Thank Flag Link Tue Aug 3, 2010
Sarah:
Why are you making this question in this forum?
Do you have an agent representing you in this transaction? If not them whatever the bank says is a requirement you have to follow.
0 votes Thank Flag Link Tue Aug 3, 2010
Sarah:
Why are you making this question in this forum?
Do you have an agent representing you in this transaction? If not them whatever the bank says is a requirement you have to follow.
0 votes Thank Flag Link Tue Aug 3, 2010
I would talk to another lender if your puting 30% down and see if they can get you qualified for a conventional loan. There are some lenders that will still do loans with higher debt to income ratios. If yours is well over 50% then paying down your debt to lower it is a good idea.
0 votes Thank Flag Link Tue Aug 3, 2010
Why do you need to do an FHA, never main your low income of $37K. You can make a conventional loan, with better interest rate and less closing costs. FHA is better for 1st buyers with lower downpayments. If you need to contact me:

Gustavo Diliz
Realtor-Ass.
Mortgage Broker
Cell: 305-525-4743
Fax:786-522-0071
0 votes Thank Flag Link Tue Aug 3, 2010
Hi Sarah
If it is FHA then yes you will have to pay PMI.

with the basic scenario you put forth and not knowing your actual ratios of DTI (debt to income) there is a possibiity to go conventional with the 30% down and no PMI

If you like contact This mortgage broker she is well reccomended and can possibly help you.
Joanne Scoratow
President
JS Financial, LLC
Direct: 561-716-1568
Fax: 954-725-1431

Best of Luck on your purchase
Jose Castillo Realtor, CIPS, ePro
954-240-3940 or josesellsfl@yahoo.com
Web Reference: http://www.josesellsfl.com
0 votes Thank Flag Link Tue Aug 3, 2010
Hello Sara,

These are excellent questions that your Loan Office can answer for you.

Thank you,
Mary Caballero
REALTOR
786-953-3905
0 votes Thank Flag Link Tue Aug 3, 2010
Mortgage Insurance is one of the requirements when obtaining FHA financing. Try paying off some debt you may have , in order to reduce your debt to income ratios, so that you may qualify for a Conventional Loan and avoid PMI.
0 votes Thank Flag Link Tue Aug 3, 2010
Contact a credit union. They may be more flexible.
0 votes Thank Flag Link Tue Aug 3, 2010
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