New Conventional and FHA Loan Limits/FHA Lowers PMI 2017

Do FHA Loans Have PMI?

The Federal Housing Administration (FHA) provides mortgages to assist low- and moderate-income borrowers in purchasing a home. To secure the loan, FHA mortgages require an upfront fee, known as the mortgage insurance premium (MIP). This fee, which is paid in a lump sum or in monthly installments, protects the lender in the event of default.

MIP is required for all FHA loans, regardless of the loan amount. The amount of MIP that must be paid is based on the size of the loan, the amount of down payment, and the length of the loan. For example, loans with a down payment of less than 5% may require a higher MIP payment than those with a down payment of more than 5%.

In addition to MIP, FHA loans also require the borrower to pay private mortgage insurance (PMI). PMI is an additional form of insurance that protects the lender in the event of a default. Unlike MIP, PMI is not required by law and may be paid as an upfront fee or as part of the monthly mortgage payment. Unlike MIP, PMI is not required for all FHA loans.

The amount of PMI required will depend on factors such as the size of the loan, the amount of the down payment, and the loan-to-value ratio. A borrower who has a loan-to-value ratio of 95% or higher will be required to pay PMI, while a borrower with a loan-to-value ratio of less than 95% may not have to pay PMI.

Key Points:

• The Federal Housing Administration (FHA) provides mortgages to assist low- and moderate-income borrowers in purchasing a home.
• MIP is required for all FHA loans, regardless of the loan amount.
• FHA loans also require the borrower to pay private mortgage insurance (PMI).
• PMI is not required for all FHA loans and the amount of PMI required will depend on factors such as the size of the loan, the amount of the down payment, and the loan-to-value ratio.

People Also Ask Questions and Answers:

Q: Is PMI required on FHA loans?
A: PMI is not required for all FHA loans and the amount of PMI required will depend on factors such as the size of the loan, the amount of the down payment, and the loan-to-value ratio.

Q: How much is PMI on FHA loans?
A: The amount of PMI required will depend on factors such as the size of the loan, the amount of the down payment, and the loan-to-value ratio.

Q: Can PMI be removed from an FHA loan?
A: Yes, PMI can be removed from an FHA loan if you meet certain criteria, such as having a loan-to-value ratio of 78% or lower.

Do Fha Loans Have Pmi – Most Popular?

Jared discusses how to save money in 2017 by introducing his video with Mortgage News for 2017. Conventional Loans and FHA Loans have each increased their loan limits for Maricopa and Pinal County. FHA loans also now have even lower monthly mortgage insurance.

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Jared Halbert is a mortgage loan officer in Arizona. He is licensed to originate loans in the state of Arizona. Residential loans include Conventional loans, FHA loans, VA loans, USDA loans, and Reverse Mortgages. He is dedicated to helping his clients understand the residential loan process.

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www.jaredhalbert.com

Jared S. Halbert
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KRF Financial, LLC
MB-0906281
NMLS#158803

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