Are private lenders able to charge PMI?

[Henley H.]

Are private lenders for real estate able to charge private mortgage insurance the way that banks do as an added security? Any insights would be appreciated- Thanks!

[Jay Hinrichs]

Originally posted by @Nick Belsky:

@Henley H.

Mortgage Insurance is usually associated with govey backed loans... so Private Money and Hard Money Lenders don't use it.  Non-QM lenders don't use it either.  

Cheers!

I suspect the reason the OP is asking is that he is dealing with a fake lender who is trying to tell him that he needs to buy this PMI for this loan.. Very common tactic for the Fake lenders out there who do nothing but collect up front money and are just a scam / criminal enterprise. I saw one one time where the insurance was a company in Thailand LOL cool logo.. but it simply does not exist.