Home Buying in Lake Geneva>Question Details

Jasonhunter, Home Buyer in Lake Geneva, WI

We have been approved for a FHA loan with 10% down and can't find a mip or pmi company that will accept us,

Asked by Jasonhunter, Lake Geneva, WI Fri Mar 6, 2009

What can we do? Thanks
Jason

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On an FHA loan there is no mip or pmi company to deal with. FHA self insures. Meaning they collect the premiums themselves. If your loan is approved, than the mip (mortgage insurance) is included. On conventional (Fannie Mae, Freddie Mac) loans there is pmi (private mortgage insurance) if the amount borrowed is greater than 80% of the purchase price. There are several pmi companies out there but they all are very similar in what they're willing to insure. They look at factors like credit score, reserves, and several other factors. The pmi companies set their own rules.
0 votes Thank Flag Link Thu Mar 11, 2010
Jason-

On an FHA loan, mortgage insurance is standard and is set by the government. You don't have to find an mip company to issue it. Can you clarify what the difficulty is?

Is it possible that you qualified for an FHA loan but you can't find a bank to take your file?

Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online: flagstarloans.com/lallison
0 votes Thank Flag Link Fri Mar 6, 2009
Are you purchasing a condo? That is a real issue that we are having right now. I have serval buyers that I am working with that are having the same problem. It seems that the PMI companies are changing their rules by the minute. Have you tried a local bank? Johnson Bank might be one or Westbury Bank might be another for you to try.
Web Reference: http://www.debbyrealtor.com
0 votes Thank Flag Link Fri Mar 6, 2009
If you are having difficulty with getting PMI for the purchase of a condo, the PMI companies generally will not insure if there is an over amount of renters vs. owners. The main loan qualifies you, but, PMI qualifies the property to a greater degree.
Flag Mon Apr 30, 2012
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