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I die and have fha mop insurance do my survivors get anything?

by dandw1520 from Schofield, Wisconsin. Aug 4th 2017 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,477 contributions

FHA loans have something called MIP (Mortgage Insurance Premium), and then monthly mortgage insurance. The FHA mortgage insurance on a home loan is there ONLY to protect the lender in case of default. There is never anything paid out to the owner or survivors if you die. For FHA loans in MN, WI, or SD, visit me at www.WI-MortgageBroker.com

Aug 4th 2017
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Joshua Wachowiak (Joshua.wachowiak)
#23 ranked lender in Wisconsin - 66 contributions

The previous comment from Joe Metzler is correct. To comment further: if you are looking to protect the equity you have built, I would recommend talking with an estate planner. An estate planner or real estate attorney would be able to help you with understanding on the tax implications, how the property would transfer upon the death of the current title holder, etc. If you are looking to setup a way for the loan amount on your home to be satisfied on your passing, you could look at life insurance (many options to consider term life insurance, whole life insurance, etc). You would need to talk with a trusted insurance agent. Last, depending on your situation--if the survivors happen to reside in the property you could look at adding them to title and or potentially refinancing in their names as well as yours, so that in the event of your passing, there is a living person still on the lender's note and mortgage. Hope that helps. All the best.

Aug 4th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,862 contributions

I think you mean MIP.. this insurance is a policy that is included in your loan, but it only protects the lender in the event you default on the loan, so the beneficiary is the lender. If something happens to you, and you have equity,,, your survivors could take over your loan without having to qualify.. but they would be responsible to pay the mortgage payments.. if they don't then the property can be foreclosed.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Aug 7th 2017
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