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How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

Contributor

How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

 


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Message 1 of 10
9 REPLIES
New Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

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

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Message 2 of 10
Valued Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

I thought it was 10% for FHA and 20% for conventional...I could be wrong.
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Message 3 of 10
Established Member

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

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

Message 4 of 10
Regular Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

22% on a 15yr fha




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Message 5 of 10
Frequent Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

Wow, so many different answers! 

Message 6 of 10
Valued Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

Wow everyone is all over the place here... Smiley Tongue

 

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.

Message 7 of 10
Valued Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

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.
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Message 8 of 10
Valued Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

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.

Message 9 of 10
Valued Contributor

Re: How much do I have to put down on an FHA loan to avoid the monthly PMI payments?

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. :-)
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Message 10 of 10