FHA Loan details and questions

[Colby Zeller]

Hi BP community, I have some questions about the FHA Loan Mortgage Insurance premium, and other relative cost when using this house hacking method. I plan on buying either a Multi-family/Single-family home to make my main residence, then using FHA methods to finance the property. I was looking into the loan details and saw there is an added insurance premium added on to your monthly payments, and was wondering if this is accurate information. Any thoughts or details given would be greatly appreciated !

[Jon Puente]

Hey Colby,

Absolutely correct. FHA has Upfront Mortgage Insurance Premium (UFMIP) that you will pay/finance into your closing costs, as well as Mortgage Insurance Premium (MIP) included in your monthly payment. The UFMIP is a one-time cost while the MIP is every month until you refinance out of an FHA loan (assuming you are doing 3.5% down).

If you have any additional questions, just PM me!

Great Question!