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Can you put 20% down with FHA Loan?

Posted on: 17th Apr, 2009 08:12 pm
I lived in California. I understand that FHA loan is for firsttime buyer with low down payment. But am thinking of putting down 20% down payment with FHA loan because:
1- I do not want to pay PMI
2- I can get a better rate than conventional loan (BOA). one point different given by a FHA loan officer( countrywide).
3-BOA has no fee but the different in interest will add
up more than the saving on closing cost.
Please, give me your opinion. I looking for a loan now for my townhous. Thanks
Hi, I think the min you can put down is 3% up to a maximum of 20% down so i see no problem with you putting down 20%. FHA rates are just as good as conventional loan rate right now.
Posted on: 17th Apr, 2009 11:10 pm
Hi phamdv ,

Welcome to our forum.

Here i would like to advice that you have not need to pay PMI because your making 20 % Down payment to them. As Garysnober says it will 3% down & 20 % up.

You can get better rates than conventional loan but its also depending on your situation & location. As you say you in California there i think you can get better rates for FHA ( Federal Housing Administration ).

Yes, BOA ( Bank of America ) is not charging for fees but they will add
up more than the saving on closing cost.

I hope you will satisfied by my answer.

Thanks & Regards.
Posted on: 18th Apr, 2009 12:08 am
Well phamdv, I don't see a problem if you can make a 20% down payment on your home and avoid paying the PMI or Private mortgage insurance. However, I'd surely mention here that the PMI compensates for the payment in case you default on your mortgage. The rest is obviously going to be your own decision.

May god bless you.

Posted on: 18th Apr, 2009 08:33 am
go with the fha loan, put your 20% down and don't be confused by misleading opinions.
Posted on: 20th Apr, 2009 07:21 am
First of all there is no PMI on an fha loan! What are you hoping to accomplish by putting 20% down?
Posted on: 22nd Apr, 2009 07:27 pm
For FHA minmum downpayment required is 3.5% and with and upfront MIP of 1.75%.

Best option would be to go with 20% down, will keep yoru monthly payments low.
Posted on: 22nd Apr, 2009 08:45 pm
confusion reigns. private mortgage insurance is provided by companies on conventional loans with an ltv over 80%.

mip is what fha loans carry - mortgage insurance premium. there is an upfront charge of 1.75% of the loan amount - typically added to the loan amount and financed; and there are monthly mip premiums based on .55% of the loan amount.

so when someone says that fha loans do not have pmi, that is correct inasmuch as pmi is only on non-government insured loans.
Posted on: 23rd Apr, 2009 06:06 am
can you have the mip on an fha loan removed at some point? or does it stay for the full life of the debt? thanks
Posted on: 29th May, 2009 01:25 pm
One you pay 20% of the principal, you can contact the lender and ask them to remove the PM or MIP.
Posted on: 29th May, 2009 06:21 pm
It does not matter if you put 20% or 3% down you are still going to pay for PMI FHA wont back your loan with out it.
Posted on: 19th Sep, 2009 07:49 am
Which is exactly why I do not even look at FHA for borrowers who have 20% down.
Posted on: 19th Sep, 2009 08:20 am
Additional down payment will not help you in FHA loan. you can get lower & attractive interest rates in conventional loan.

MIP is only charged until the loan principal has been paid down by 22 percent
Posted on: 19th Sep, 2009 09:45 am
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Posted on: 22nd Jan, 2010 02:02 am
>>1- I do not want to pay PMI

FHA mortgages always include Mortgage Insurance, regardless of the amount of the down payment. It will be reduced with a larger down payment, but it'll still be there.
Posted on: 22nd Jan, 2010 04:36 pm
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.
Posted on: 09th Feb, 2010 03:49 pm
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