Private Lending & Conventional Mortgage Advice

User Stats

2
Posts
0
Votes

User Stats

98
Posts
72
Votes
Replied Aug 3 2022, 03:45
Quote from @Winfred Yoder:

Is private mortgage insurance charged on an FHA loan after 20% of the loan is paid for?


 Yes, it is charged until the loan is paid off. 

User Stats

389
Posts
298
Votes
Joaquin Camarasa
  • Real Estate Agent
  • Springfield VA
298
Votes |
389
Posts
Joaquin Camarasa
  • Real Estate Agent
  • Springfield VA
Replied Aug 3 2022, 04:05

what @Joel Case said, just adding you could refinance into a conventional loan down the line if the property appreciated enough and get rid of PMI.

Real Estate Agent Maryland (#5005383), DC (#SP200202941), and Virginia (#0225 240670)

User Stats

2
Posts
0
Votes
Replied Aug 3 2022, 09:36

Thank-you for the feedback!

User Stats

685
Posts
579
Votes
Paul De Luca
  • Real Estate Agent
  • Chicago, IL
579
Votes |
685
Posts
Paul De Luca
  • Real Estate Agent
  • Chicago, IL
Replied Aug 3 2022, 09:42

@Winfred Yoder

You can refinance out of your FHA loan once you have 20% equity to remove the PMI, which will really help your cash flow. Then you can use FHA again!

User Stats

41
Posts
30
Votes
Jay Voorhees
  • Lender
  • CA TX AZ MA
30
Votes |
41
Posts
Jay Voorhees
  • Lender
  • CA TX AZ MA
Replied Aug 3 2022, 12:09

I also wanted to add too that PMI and MI are slightly different! If you have an FHA loan you have "Mortgage Insurance." Mortgage Insurance on FHA loans is provided by the government (HUD) in particular) and is permanent in most cases and cannot be eliminated like PMI can. If you refinance out of your FHA loan into a Conventional loan, you can remove your Mortgage Insurance.

PMI (Private Mortgage Insurance) is associated with conventional loans and can be eliminated by refinancing, paying the loan down to amount equal to 80% of the original purchase price, or by proving that the home has appreciated to the point where the loan-to-value ratio (LTV) is at 75% or less.

User Stats

1,182
Posts
434
Votes
Dave Skow
  • Lender
  • Seattle, WA
434
Votes |
1,182
Posts
Dave Skow
  • Lender
  • Seattle, WA
Replied Aug 3 2022, 13:18

@Winfred Yoder assuming the loan to value is over 90% - the FHA mortgage insurance is permanent and will not be able to be eliminated unless you payoff the loan