PMI (Private Mortgage Insurance) Tricks & Tips

[Stephen Wiater]

Hello All,

I am trying to get approved for a FHA loan and I understand that there is PMI insurance in most cases.

My questions is:

Is there a way to not pay the PMI payment at all or a very low PMI payment?

any tricks and tips regarding this matter or the whole FHA loan process would be much appreciated!

Thank you guys!

[Chris Mason]

Originally posted by @Stephen Wiater:

Hello All,

I am trying to get approved for a FHA loan and I understand that there is PMI insurance in most cases.

My questions is:

Is there a way to not pay the PMI payment at all or a very low PMI payment?

any tricks and tips regarding this matter or the whole FHA loan process would be much appreciated!

Thank you guys!

Hate to be the wet blanket, but here's what you need to hear, which isn't what you want to hear...

The above posters are not wrong about PMI, but FHA loans do not have PMI.

They have FHA MIP, which is non-negotiable, does not vary by lender, is set by HUD, and is 0.85%/12 per month no matter who you are or what your scenario is, if you're putting 3.5% down.

The only choice you have is to finance the FHA UFMIP of 1.75%, or pay 1.75% upfront. Assuming good credit, however, that's not really a choice since 3.5% + 1.75% = 5.25% = why not do conventional 5% down where the full 5% is all equity, not 3.5% equity and 1.75% gone into space?

Conventional non-FHA financing, there is all sorts of cool stuff we can do with PMI, particularly if you're putting at least 10% down. Conventional financing has options as low as 3% down.

PMI stands for private mortgage insurance. FHA is a government loan, not private sector.