Rental calculator with FHA loans
I am just starting to play with the rental calculator and am wondering if there is a way to factor in the expenses associated with an FHA loan? Without these expenses, all the numbers it gives me are going to be incorrect.
Appreciate anyone for the guidance.
Thank you.
Most Popular Reply
Do you mean the addition of Mortgage Insurance Premium (MIP)? Using the rental calculator assumes that you are buying an investment property. As of 2013 FHA requires any loan with an LTV ratio greater than 90% top have MIP for the term of the loan. it doesn't automatically drop off once you hit 22% equity, you would have to refinance out of an FHA loan to remove the MIP, with this considered, you might find the MIP you pay over the time just isn't viable. I know it doesn't answer your question, but taking this into account, maybe it does.
Look for an "FHA Loan calculator" to give yourself an idea of what MIP will cost you