1st Time Home Buyer- Mortgage Question

[BigFatMatt]

FHA you're stuck paying PMI every month until you refinance.

FHA also backs traditional fixed rate loans too, the government sets the rates and the loan is underwritten through FHA but the rules are different regarding PMI / mortgage insurance. I'm pretty sure this is different depending on where you live, I've talked to people who swore up and down this wasn't available where they were from but it was the best option for me.

**edited for clarity**

 

[Stanger00]

I have an FHA loan. I don't pay PMI. You need to research FHA.

FHA you're stuck paying PMI every month until you refinance.

FHA also backs traditional fixed rate loans too, the government sets the rates and the loan is underwritten through FHA but the rules are different regarding PMI / mortgage insurance. I'm pretty sure this is different depending on where you live, I've talked to people who swore up and down this wasn't available where they were from but it was the best option for me.

**edited for clarity**

Read the last paragraph of the following link.

https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/comp/premiums/prem2001


You may not pay a monthly PMI but to say those who use FHA today to back their loan and will not have to pay PMI is misleading information. Also, if you have good credit a conventional loan is better to get because you'll get a lower PMI payment.


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[BigFatMatt]

You're right Stanger00.... I can see how that could be interpreted as misleading but that was not my intent.

I don't pay PMI on my loan but it is considered an FHA loan according to my broker... it's a conventional loan underwritten through FHA.

My point is there are different options for people who would like to go through FHA but don't like paying mortgage insurance every month.

I'm not an expert but my broker was, and I'm very glad he gave me good advice that worked very well for my situation. I guess my point would be to put in the hours and talk to different people before deciding what to go with because you never know unless you look.