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Can I waive escrow on an FHA loan for a purchase if I put 20% down?

Realgeni's picture
Realgeni | Joined: April 13, 2009 08:03 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Escrow is where portion of the real estate taxes, private mortgage insurance (if applicable) and homeowner’s insurance on your property is included in your monthly payment. They are held in an escrow account until they come due and the mortgage company pays them from this account.

You may waive the requirement to escrow for homeowners insurance for any loan. However there are requirements that must be met to waive escrow for real estate taxes on your primary residence.

I think it may not be a option with FHA.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:39 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I can help. Email me!

MSmith@PrecisionFundingUSA.com

M

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:39 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

escrows are generally a requirement, period, and especially so on high ltv loans or government loans. there is a waiver process, which will usually cost you .25 point or so. what the public doesn't understand, generally, is that taxes to a municipality are first in line for payment in the event of a default, ahead of any mortgages. therefore, lenders are nervous about allowing a borrower to pay his or her own taxes (and insurance, too). and, therefore, that explains the cost involved in obtaining a waiver of escrow.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:39 | Post subject:

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