For More Details Chick Here: http://fhamortgageinfo.com/
Also, FHA will not insure all property, so if you are going the FHA route, make sure that the property is insurable through FHA (most of the time it is new construction or pre-construction property that is not insurable, therefore you cannot use FHA for these properties).
If you have any further questions about FHA loans, contact Shannon Bagshaw with Chase Mortgage; she can answer all your questions. She, in fact, just closed an FHA loan for my buyer on Friday. I have also had three other buyers this year that have used FHA and believe that it will continue to be a popular loan for buyers.
Shannon's info: 404-444-9553 or firstname.lastname@example.org. She is very responsive to email so you may try doing that first.
Mortgage Investors Group
Hope this helps,
Keller Williams Realty Consultants
Senior Loan Consultant
Platinum Capital Group
Once your loan to original value has reached 70% by making regular payments, the PMI should automatically drop off. Take a look at the amortization schedule. For a $300,000 30 year fixed rate loan at 6%, it would normallty take you almost 15 years to reach that level. But, it you consider a mortgage accelerator, you could cut that time in 1/2 or even less.
Keller Williams Realty Consultatns
The PMI is for conventional loan that has greater than 80% LTV.
BTW, all this might change come Oct 1, 2008. Stay tuned.
The reason you still have to have PMI (Private Mortgage Insurance) on an FHA loan where you've put down 3% is because it is considered a higher risk loan. Basically, any loan where the buyer has put down less than 20% will have PMI. The amount is added to you monthly payment, not typically a lump sum amount that you have to come up with at the closing. After you have owned the home for some time, and you gain more equity, you can have an appraisal and request for the PMI to be removed...You have to build up 20% equity in the home.
Again, you will want to seek the advice of a Mortgage professional. You may want to try Coldwell Banker Home Loans 1-888-240-6986.