Home Insurance in 55349>Question Details

mattisonmark, Home Buyer in Howard Lake, MN

what type of home insurance is required for a fha loan?

Asked by mattisonmark, Howard Lake, MN Thu May 3, 2012

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Most banks that write FHA loans will require that you buy homeowners insurance from an A rated insurance company. They want you insured with a company that can afford to pay a claim should the need arise.
0 votes Thank Flag Link Thu May 24, 2012
Hi, mattisonmark!
This is a REALLY good question! It's always smart to talk about all of the different kinds of insurances associated with the purchase of a home.

There's mortgage insurance, title insurance, flood insurance (sometimes), home warranty (kind of like insurance) and mandatory home hazard insurance.

I assume you're purchasing a single family home and not a townhouse or a condo, is that correct??

If so, you needn't purchase any "special" policy. Just a regular hazard insurance policy is what's needed. I would make a few calls to some local insurance agents to get some different quotes about specific policies and what they cover AND, how much the premium costs. Usually, on an FHA loan, it will be required for you to escrow that money and pay for it in your monthly mortgage payment to the lender.

Good luck!!!!!
0 votes Thank Flag Link Fri May 4, 2012
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