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Is there mortgage insurance or pmi on the fannie homestyle mortgage?

i would be putting 7 - 11% down, depending on extra costs required. by jenweiner7943625 from Greenwich, Utah. Dec 10th 2014 Reply


Brett Pehrson (brettpehrson)
#19 ranked lender in Utah - 228 contributions

Yes, unless you are putting down 20%, or more, you still have to address mortgage insurance somehow, even on the Homestyle program. You can either pay it monthly, buy it out with a single premium, or opt for Lender-Paid MI (essentially either financed in rate or paid as a single premium disguised as discount points). Generally, I would suggest the latter of the 3, as it typically works out better and is a more tax-advantaged structure.

Dec 10th 2014
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Jason Vondrak (jvondrak)
#217 ranked lender in California - 1,741 contributions

If you are not putting 20% down, you will have to pay for mortgage insurance. You do have several options when it comes to mortgage insurance like Brett stated. Lender-paid MI is often a great option for many homeowners.

Dec 11th 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

All Fannie Mae loan products require MI if you are financing more than 80% of the homes value.. so yes.. you will be required to pay MI.. the fee is tiered at 95%, 90%, and 85%.. so if you put 10% down, your MI rate will be less than if you put 7% down.. 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

Dec 11th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,246 contributions

I usually show my customers the "financed" PMI option, the cost of paying it for the life of your loan is added to the mortgage amount. The cost can be as little as about 1.5% of the loan amount depending on your credit score and the LTV before the financed PMI. HomeStyle expert, Licensed in Utah and I can help: pdumouchel@primelending.com or 843-619-6025 http://pdumouchel.primelending.com **PrimeLending was #4 purchase mortgage lender in the US in 2012 and 2013 as determined by MarketTrac(c) for Jan-Dec 2012 & 2013

Dec 11th 2014
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