Colli Real Estate

When you get FHA Loan when do you pay Mortgage Premium Insurance: up front, as monthy payments or both?

Someone told me if I paid upfront I should not be paying monthy premiums, is that correct?
Hi “Golferwhoworks”. I really appreciate your answer. I can’t find the answer anywhere and I have spent hours researching it online.

Hi, Julka.

FHA 30yr Fixed loans require both an UFMIP (Up Front Mortgage Insurance Premium) of 1.75% and monthly Mortgage Insurance premium of 0.55% if your LTV is over 95%; 0.5% if your LTV is under 95%. FHA 15 yr Fixed loans have the same UFMIP, but if your LTV is over 90%, the monthly MI is 0.25%. If the LTV is below 90%, there is no monthly MI.

The UFMIP can be financed into the loan. Whoever you’re getting advice from is not familiar with FHA lending.

I’m a little surprised that you haven’t received this answer until now. This is pretty simple stuff straight from the FHA guidebook.

Email me, and I’d be happy to go through this with you and discuss your options. I’m a loan officer with the ability to lend in all 50 states. Conversation and information are both FREE.

Charles

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