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Is there absolutely no way to waive PMI for an FHA Loan anymore?

I heard that FHA loans changed and now PMI is charged for the lifetime of the loan and not just until reaching 20%. Is there absolutely no way to waive this? Don't have 20% saved up yet for a down payment but I really don't want to pay PMI for the lifetime of the loan... by Ryan1Rob from Springfield, Virginia. May 30th 2013 Reply


Darius Jenkins (Darius)
#67 ranked lender in Virginia - 23 contributions

You might want to look at a conventional loan where you can put down as little as 3% - 5% have PMI that is less than FHA and does not last for the life of the loan. You can also pay MI off upfront as part of closing cost on a conventional loan and have no monthly MI. Feel free to contact me for details

May 30th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,414 contributions

For case numbers issued on or after June 4th 2013, the MI will be for the life of the loan. the only way to eliminate it would be to refinance or payoff your loan. If your looking to purchase a home now, and you already have an accepted contract and your loan packet has been submitted, then your lender can order the case number and you would fall under the current guidelines, not the new changes... however if you go past June 4th, then consider going conventional rather than FHA... the rate will be slightly higher, and the MI will be slightly lower, so your payment could be about the same.. however under conventional MI, you can cancel it after 2 years if you can establish / prove you have 20% or more in equity.. .. 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. 480-287-5714 WilliamAcres.com

May 30th 2013
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Allan freitag (AllanF)
#100 ranked lender in Illinois - 2 contributions

THere are some lenders out there that have lender paid PMI the rate is slightly higher but the loan is considered a conventional loan. if you would like more information please give us a call 847-885-2020 ask for Dan. Maybe we can help

May 30th 2013
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Darius Jenkins (Darius)
#67 ranked lender in Virginia - 23 contributions

That is correct. As of June 1st PMI for a FHA loan is for the life of the loan if the down payment is less than 10%. If putting down more than 10% the PMI will last for 11 years. Hope this helps. Please feel free to contact me any time for advice or pre-approvals

May 30th 2013
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FHA Mortgagee Letter 2013-04 outlines all the current regulations regarding MIP (Mortgage Insurance Premium). Unfortunately, there is no way to avoid paying MIP on the 30 Year loan program. The 15 Year loan program does allow for MIP to fall off once certain LTV levels are achieved. The Conventional program does have monthly Mortgage Insurance on any LTV of 80% or higher, but you can increase the rate to cover that cost or if there is enough Seller Concessions on the contract it can be paid with that.

May 30th 2013
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#1 ranked lender in Florida - 687 contributions

FHA rates are 5 point better than conventional you can go 96.5% on FHA and 95% and roll in PMI one time fee to 97%, so in saying that conventional is the way to go since little higher rate and lower PMI fee's in general are a better deal than FHA.

May 30th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

LIke the others have stated, just go with a conventional loan and you could also but a Home Path loan to 97% with No MI and NO Appraisal and only need a 660 Fico..

May 30th 2013
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Steven Cook (stcookmortgage@gmail.com)
#40 ranked lender in Washington - 256 contributions

As the others have mentioned, the FHA Mortgage Insurance is going to be permanent on all FHA 30 year loans which are put into the FHA system beginning next week. I am also of the opinion that going with a conventional mortgage would be a much better program, and only takes a 5% down payment. Then the conventional mortgage insurance would be on the loan, but it would be less per month, and would drop off at the 78% LTV position on the loan.

May 30th 2013
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Tim Howard (TimHoward)
#74 ranked lender in Ohio - 52 contributions

Conventional loans will allow upfront MIP instead of monthly mortgage insurance premiums. The amount depends on a few factors, namely LTV, Credit Score & DTI. You can save a ton with an upfront premium in many cases. If you have a specific scenario in mind I can give you a good idea on the pros & cons of Conventional vs FHA to see which would be the best fit. Feel free to email me @ thoward@mtgcapital.com.

May 30th 2013
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Joe Metzler (JoeMetzler)
#18 ranked lender in Minnesota - 3,727 contributions

All FHA loans have PMI, regardless of down payment. There are cheaper PMI alternatives with a conventional loan. On conventional loans, PMI is based on down payment, and the overall client picture. So the more you put down, and the better your credit, the cheaper PMI. There are other alternatives live Single Premium PMI, and even LPMI (Lender paid mortgage insurance). For a large number of reasons, what was popular not too many years ago, an 80/10/10 loan, is still available, but much harder to obtain. Talk to a local mortgage broker for more details and options.

May 30th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Even with MMI on FHA loans, your "combined rate", (interest rate plus MMI), is lower than the historical baseline of 6% for mortgage loans. Act promptly, before property values and interest rates go up.

May 30th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Lender paid MI programs are available

May 30th 2013
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Jericho Cherry (Jerichocherry)
#57 ranked lender in Virginia - 1,107 contributions

Sorry my friend but there is no way of getting around paying PMI on FHA Loans. But there are other alternatives such as the ones that have already been stated. I am Branch Manager close to your area. Feel free to email me at: jcherry@loansimple.com, or call me at 804-556-0685.

May 30th 2013
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Barb Lanis (BarbLanis)
#70 ranked lender in Illinois - 663 contributions

Save just a little more in order to put at least 5% down and you can go with a Conventional loan. You will still pay PMI, but not for the life of the loan. FHA just isn't appealing any longer, unless you have low credit scores or some of the other underwriting flexibilities that FHA allows.

May 30th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

We have purchase loans with 3% down for a conventional loan.

May 30th 2013
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

Yes, FHA in June, will require all FHA loans newly originated starting in June to have mortgage insurance for the life of the loan-The best way is to put between 3-5% down and go conventional with mortgage insurance- You then can have the mortgage insurance taken off once you have equity of 22% or greater-Hope this helps,Pete

May 30th 2013
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Raymond Denton (Raymond)
#11 ranked lender in Ohio - 224 contributions

Yes, that's correct.

Jun 1st 2013
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Calvanaugh Hoskins (HardMoneyCal)
#73 ranked lender in Maryland - 12 contributions

Ryan, what is the reason you want an FHA loan? There are some other loan programs available that allow you to achieve your objective.You can call me at 561-859-7363 or email me at choskins@heritagefinancial.com.Thanks, Calvanaugh Hoskins

Jun 3rd 2013
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Jason Robinson (CFIsupport)
#58 ranked lender in Georgia - 106 contributions

Technically FHA insured mortgages don't have PMI( private mortgage insurance), they have a MIP (mortgage insurance premium). Same letters 2 separate things. A conventional loan would be the quickest way to get in your new home as many have suggested. Moreover PMI is generally cheaper than MIP if you're scores are above 680. We cover the state of Virginia and would be glad to offer you a comprehensive quote. Good luck!

Jun 4th 2013
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