do i have to pay pmi (private mortgage ins.)for an fha loan even though i put 25% down ?

Asked by Adam, 98188 Sat Aug 1, 2009

I bought a condo , closing in a few days , when i signed the pre closing papers , i noticed there was a pmi , and when i asked the loan officer , she told me because it's fha loan . is this true ? and if it is not , what can i do to change that without delaying the closing? thanx.

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6
Swannie, , Vancouver, WA
Wed Aug 15, 2012
Hard to believe all the learned minds here can't give a straight and correct answer:
FHA, 30 yr loan: 5 yrs of monthly MI regardless of starting LTV (yes, I know the federal MI reg. but it doesn't apply to FHA here).
FHA, 15 yr loan with starting LTV 78% or less: No monthly MI.
All FHA loans have UFMIP regardless of starting LTV.
0 votes
Pierre S King…, , Brooklyn, NY
Mon Aug 3, 2009
You're welcome Mark! Let's see if we could do some business

Pierre
0 votes
Kary Krismer, Agent, Renton, WA
Sat Aug 1, 2009
I'm just going to say something to follow the answers, to see if there's another reason FHA might have been used other than low credit scores, high ratios. It would be sort of odd to have 25% down, and have low credit scores, high ratios, but anything is possible. I once had a bankruptcy client that had $75,000 in savings and $125,000 in credit card debt when he came to see me.
0 votes
He probably figured that there was no point in bleeding out all 75 grands and still be in the red!
Flag Sun Mar 31, 2013
He probably figured that even if he paid all 75000 he would still owe money and he would be broke, so he must have decide to have bad credit and keep his money.
Flag Sun Mar 31, 2013
Mark Despain, Agent, Seattle, WA
Sat Aug 1, 2009
Thank you, Pierre. I stand corrected on MPI vs. PMI : )
0 votes
Pierre S King…, , Brooklyn, NY
Sat Aug 1, 2009
Adam:

There are 2 major types of Mortgage Insurance. Conventional Loan uses Private Mortgage Insurance - PMI and FHA uses Mortgage Insurance Premium - MIP

.The FHA Mortgage Insurance Premium
FHA mortgage insurance is similar to the private mortgage insurance (PMI) required for conventional mortgages with down payments below 20%, but there are some key differences

CLICK BELOW FOR DIFFERENCES.
http://www.bills.com/fha-mortgage-insurance/

Go back to your mortgage broker with the above attachment!

Good Luck!

Pierre King, Associate Broker
Weichert Realtors H P Greenfield
http://www.kandhHomes.com
Web Reference:  http://www.kandhHomes.com
0 votes
Mark Despain, Agent, Seattle, WA
Sat Aug 1, 2009
If you are putting 25% down I can only assume that your loan officer put you into an FHA product because of a low credit scores and/or high debt to income ratio. Generally, with that high of a down payment you would get a better rate going with a conventional loan without PMI. But FHA has easier qualifying standards and, yes, there is always the PMI.

If you are closing in a few days there is probably no way to change your financing without permission from the seller to extend the closing date. That is probably not likely considering it would take a couple of weeks to secure a different loan.
Web Reference:  http://www.homehounds.com
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