Private lenders that require PPI's as requirement

[Jamurral Corbin]

Has anyone received a final approval from private lender that requires to purchase payment protection insurance policy for a loan term for funding.

[Jeff S.]

This is becoming a pretty common scam, @Jamurral Corbin. There is no such thing as an insurance policy that guarantees a private loan.  Don't I wish.

PMI is for conventional loans (Fannie, Freddy, etc.). PPI is a made-up name. No matter. The only insurance any legitimate private lender will ask you to pay for is a lender's title policy and fire/hazard insurance (or landlord ins., or homeowner ins., etc., as appropriate). These would be purchased when you close your deal. The title insurance would be paid out of the proceeds you wire to title or to your closing attorney. The fire and hazard insurance would be paid by you directly to the insurance company.

There is never a reason to send money for insurance to a lender.