+1 vote
We purchased our primary residence in 4/2018, FHA with low down payment. Understanding we will be stuck
W/ PMI for life of the loan now.
Does FHA require a minimum amount of time that we must pay PMI? Is that why I see different rules if purchased prior to certain dates? Not sure how often these rules change.

We own another home clear, but can’t get any cash out until Nov 2018. Previous SS. Nov will be 4 years.
My thoughts: If we apply for a 203k loan to make improvements on our primary, (if I read correctly from a precious post) that will pay off the 4/2018 loan and switch to a fixed 30 year loan. At that point, can I put cash in from our other property towards the down payment of new loan to rid ourselves of this wasteful PMI ? And if so, what would be the amount needed 10%, 20%?
I hope that made sense. Thank you.
asked Aug 9, 2018 in FHA Loans by anonymous
edited Aug 9, 2018

1 Answer

0 votes
FHA mortgage insurance premium is required on all FHA Loans for the life of the loan. If you have 90% LTV on a 15 year fixed rate FHA Loans, you FHA MIP gets reduced to 045% versus 0.85%. You can do a cash out refinance mortgage on your other property of up to 80% LTV on conventional. FHA cash out limit is 85% LTV.
answered Aug 9, 2018 by GustanCho (106,540 points)

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