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.