@nsisaat wrote:
I went to a new contruction open house and the agent said that if we applied for a loan and signed a purchase and sale agreement for FHA loan, the rate would be in the 3% range still and there would not be PMI for life of the entire loan. But the closing must be before 1/15/14. Anyone heard of this? where can I read more about this?
The builder can not dictate the terms of the loan's PMI if you are getting an FHA loan. The lender and the builder are different entities. All FHA loans have MI. However, it is possible that the builder is offering an incentive toward your purchase that would theoretically "cancel out" the PMI by reimbursing you or crediting to the purchase the amount you would pay in MI over X yrs. Or maybe the builder is paying for your MI upfront at the closing.,
It isn't possible to know without reading the actual terms of the contract. Get the agent to provide you the contract to see the actual offer terms. It wouldn't be the first time that a builders representative didn't explain the terms accurately. Make sure you read the contract and understand the proposal before you sign,
