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is mortgage insurance thru FHA dependent upon credit score?

if i get my fico above 700 will it realy reduce the PMi on the FHA mortgage? Considering working with credit repair company so i'm waying out the pros and cons. i'm at 687 now by char38934899 from Glade Hill, Virginia. Jan 7th 2015 Reply


The Wallace's (sarah@priorityfin.com)
#93 ranked lender in Virginia - 5 contributions

The PMI on a FHA mortgage is 1.35% regardless of your credit score. Your minimum credit score for FHA is 620. There are additional programs coming out where only 3% down is required instead of the 3.5% that FHA requires. More information about the 3% down product will be available next week. Please feel free to call me at 804-836-7244 or email me at Sarah@priorityfin.com with any questions that you have. Thank you

Jan 7th 2015
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John Burke (jburke)
#30 ranked lender in Texas - 187 contributions

Hi Char, No the FHA MI is not credit score dependent like conventional PMI is. The good news is FHA probably isn't your best option. Glade Hill, VA is an area that's eligible for the no money down USDA mortgage. One of the best things about the USDA program is the monthly mortgage insurance is substantially cheaper than FHA or conventional options. For example: On an FHA loan of $150,000, the MMI (monthly mortgage insurance) would add $168.75 to your monthly payment but on a USDA mortgage it would only add $62.50! The other nice thing is USDA will actually allow you to roll in your closing costs as long as the appraised value supports it.| Please feel free to contact me for more information or help. | John Burke | Senior Mortgage Banker | Great Plains National Bank http://www.usdamortgageonline.com | (877)228-9069 | Lending in ALL 50 states

Jan 7th 2015
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Nevin Williams (NevinWilliams)
#42 ranked lender in North Carolina - 108 contributions

No. FHA MI does not change based on credit score. It does on conventional loans with private mortgage insurance but government insured loans have set %. What it will do is make it easier for you to pay less money in fees for the rate that you want.

Jan 7th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

FHA mortgage insurance does NOT vary by credit score. Conventional loan mortgage insurance can vary by credit score. FHA JUST today announce their monthly mortgage insurance is dropping to .85%. More details to follow on that... For FHA loans in MN, Wi, and SD - visit www.MortgagesUnlimited.biz

Jan 7th 2015
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#28 ranked lender in New York - 2,236 contributions

The PMI is set no matter what your score for an FHA loan, 1.35@ on anything over 90% loan to value and 1.30% on 90% and below. The 3% down programs are now readily available. If you are a first time home buyer you should look into my community and home affordable programs.

Jan 7th 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

The simple answer is no. Higher does not mean lower PMI.

Jan 7th 2015
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Credit score is not used for FHA PMI.

Jan 7th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,938 contributions

FHA's mortgage insurance rate is not based on credit score.. it's based on down payment amount and the length of the loan. However, with 687 score, you might want to consider going conventional financing vs. FHA.. the MI on conventional is lower and after you have paid it for 2 year or more, it can be canceled once your loan to value is below 80%. With FHA, in most instances, it's for the life of the loan.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jan 8th 2015
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Nicholas Capretta (ncapretta@usavingsbank.com)
#91 ranked lender in Ohio - 8 contributions

FHA has fixed Upfront Mortgage Insurance costs (1.75%) and monthly (1.35%), however, we are hearing that there might be a change to the FHA costs here soon. If your credit is at 687 there are some conventional loan programs that allow for only 3% down payment that would possibly be a better option for you.

Jan 9th 2015
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