Mortgage Loans

[BCullum]

I'm fairly positive its 20% to avoid PMI. 

[MovingForward_2012]

I thought it was 10% for FHA and 20% for conventional...I could be wrong.

[monaarts_hotmail]

I was told 10% on a 15 year fha ad 20% on a30 year fha.  I hope this heps!

[cclee]

22% on a 15yr fha

[payingoffdebt001]

Wow, so many different answers! 

[Mike_B03]

Wow everyone is all over the place here...

The answer is...on a 30 year FHA loan, you have to pay a MINIMUM of  5 years PMI AND have a loan-to-value of 78%. The key word there is "AND", notice it's not "or". This means it does not matter how much you put down, you have to pay PMI.

Wit a 15 years FHA loan, I believe you can avoid PMI with a 78% LTV (so 22% down payment?) but I'm not too certain on that, never looked into 15 year loans.

[MovingForward_2012]

Okay so Mike you are saying that there is no minimum downpayment for FHA that avoids PMI on a 30 year loan? So even with 20% down, you still have to pay PMI until 78% LTV? What about 22% down on a 30 year fixed? Wouldn't that get you to 78% LTV to avoid PMI? Unless the clock starts on the original financed principal, regardless of downpayment??? Very confusing.

There is a program in our state that require no PMI if you have 3.5% down and a 700 credit score. It is through CHFA. I know the program has to use FHA and not conventional. So my other question is how can certain programs override the PMI requirement for FHA? It is possible.

I know the down required to avoid PMI for FHA was discussed in the online homebuyer's class I took but I can't remember precisely what it said.

[Mike_B03]

Yes, that is correct, it does not matter what the down payment or the LTV is...even if it's 78% right off the bat. If you go FHA, you have to pay a minimum of 5 years of PMI, at least that's how I understood it from the research I did.

As for your state's program, not sure, maybe they have a certain agreement with FHA.

[MovingForward_2012]

Probably that's the case regarding the CHFA Program I mentioned. I remember your statement regarding "5 years AND 78% LTV" not OR, so that does indeed imply 5 years min PMI for FHA. That makes perfect sense. Thank you. :-)