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Guest

FHA, even with 20% down, will still have mortgage insurance. Also, there are TWO requirements to get MI removed from your FHA loan: 1) FIVE years must have passed since origination. 2) A NEW appraisal must show that you are at a 75% Loan-to-value. BOTH conditions must be true to remove MI.

If you have 20% down, go with a conventional mortgage product. If ANY lender tells you to go FHA with 20%, stand up and WALK AWAY!! I am a HUGE fan of FHA for the buyer who has little down payment, but not in your situation.

Best to you.

eric1 · Posted: Wed Feb 10, 2010 5:20 am Post subject:

Jared, the exception to that rule are the lenders who are accepting very low credit scores. For example, I work with a lender who will accept a 500 score, but the program is FHA. So, if you have no other options such as a scenario like this, then yes it makes sense. Otherwise, I am with you.

Guest

I just went through the same thing a was screwed into paying MIP anyway. FHA loan do NOT have PMI but the have Mortgage Insurance Premiums (MIP) AND upfront MIP. You pay 1.5% of you loan upfront no matter what then you pay monthly. The only way to get out of this is to have a 78% LTV ratio in an FHA loan. The max you are allowed to put down is 20%. Toy just cant get out of it. You must pay monthly premiums for at least 5 years no matter what your LTV ratio is.

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Can you put 20% down with FHA Loan?