I'm planning on buying my first house.

Asked by Stephanie, Miami, FL Mon Mar 2, 2009

I have a 20% down the problem is I have too many student loans and had to go with an FHA loan. is there any way around the pmi? do i have to pay it for 1 year, 5 years?

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Andre Shambl…, Agent, Miami, FL
Tue Mar 3, 2009
Good Eveing Stephanie,

Thank you for your inquiry. Regarding your question as long as you have an FHA insured loan you will pay mortgage insurance. Once your debt to income ratios are lower ed you will then be able to qualify for a conventional loan granted that the value is below 80% and eliminate mortgage insurance altogether.

For more information on this contact Jacinta with Apex Lending. 877-662-7066
0 votes
RN, , Miami, FL
Mon Mar 2, 2009
FHA does require PMI.
But it doesn't hurt to run different scenarios by a lender. We have an excellent in-house lender and another direct lender I work with closely may be able to answer your question in more detail.
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Bob Galivan, Agent, South Miami, FL
Mon Mar 2, 2009
The best person to discuss this with is a mortgage broker. We *always* suggest that our customers speak to at least two, because there are different programs available depending on who you speak to. A good mortgage broker should be able to analyze all of the financial factors, and suggest some options - perhaps paying down or off some of the loans with the 20%, or even a program that might still allow you to buy as you wish. The consideration is how the numbers work over the next 5 - 7 years, depending on the scenairo you choose. It might be cheaper to pay off the loans, take the FHA with the PMI, rather than put the 20% in the house - it all depends on the interest rate you get and the overall cost.
The other option is to find an area you think you might want to live in, and rent there for a year, working on improving your financial situation. Why? Because the prices will come down further, meaning that the reduced price and lower payments might serve you better.
Web Reference:  http://www.myriamsHomes.com
0 votes
Nayla Benitez, Agent, Miami, FL
Mon Mar 2, 2009
Hi Stephanie,

As far as I know ( ideally you should consult with a Bank or a Mortgage Lending Company) you need to put 20% down in order to avoid the PMI. If you don't put the 20% then once your mortgage crosses the 80% of appraised value line, in other words once you accumulate at least 20% of equity on the property you can request to have your PMI removed.

Wish I could provide more information but this is not my area of expertise.
Good Luck!

Nayla Benitez
Paz Global Inc.
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