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FHA w/no PMI

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Anonymous
Not applicable

Re: FHA w/no PMI

What they said. More than 10% down and it is not for the life of the loan.
Message 11 of 18
Talima719
New Contributor

Re: FHA w/no PMI

11 yrs is still a long time. Lol. Why wouldn't someone go conventional with that amount down?
Message 12 of 18
sports1965
Frequent Contributor

Re: FHA w/no PMI


@Malita719 wrote:
11 yrs is still a long time. Lol. Why wouldn't someone go conventional with that amount down?

maybe becasuse their credit doesnt qualify for conventional hey

Message 13 of 18
Anonymous
Not applicable

Re: FHA w/no PMI

For me my payment was cheaper fha. Maybe my lender didn't have great conventional rates, but we ran it both ways and I saved 8 dollars a month going fha. My mid score used was 673, so I qualifed credit wise for either one.

Also fha accepts higher dti, so that could be a person's reasons besides score. Fha allows up to 41% and sometimes more on the back end as long as aus and lender approve it. Convenational only up to 36% in most cases and is not flexible.
Message 14 of 18
Anonymous
Not applicable

Re: FHA w/no PMI

Did I read that right Kelfos,you went fha to save $8 a month?Will you now need to carry mpi for the life of the loan or Atleast 11 yrs if you put 10% down,does that still make it worth the $8 a month?Not trying to be judgemental just asking.
Message 15 of 18
ezdriver
Senior Contributor

Re: FHA w/no PMI


@Malita719 wrote:
11 yrs is still a long time. Lol. Why wouldn't someone go conventional with that amount down?

There are many reasons. LTV is but one of them. Some examples are dti, credit scores, employment type, type of property, etc. etc.

Message 16 of 18
StartingOver10
Moderator Emerita

Re: FHA w/no PMI


@ezdriver wrote:

@Malita719 wrote:
11 yrs is still a long time. Lol. Why wouldn't someone go conventional with that amount down?

There are many reasons. LTV is but one of them. Some examples are dti, credit scores, employment type, type of property, etc. etc.


Agree 100%^^^

 

Also, especially now, some people have had bankrupties or foreclosures or other major derogatory events in the past and the time period from the major derog and the new mortgage is generally shorter (by several years in some cases) with a new FHA mortgage rather than a conventional mortgage.  This reason is the one I have found that influences many buyers today.  

 

Sometimes it is score related as mentioned by EZ.  If your score is lower than 680, you may end up with a less expensive mortgage payment overall going FHA. The best way to determine this is to have your LO run the figures for you both ways - conventional and FHA and compare the two. 

Message 17 of 18
Anonymous
Not applicable

Re: FHA w/no PMI

Actually, yes I did for $8 or nearly $100 per year with. Also I'm paid commission, so it made my dti much easier to approve and made my loan process faster. Not to mention I can refi like anyone else can. To each his own I always say.
Message 18 of 18
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