PMI and FHA - Posted by Ron

Posted by David Krulac on March 16, 2003 at 15:15:10:

you refinance before full term and the average of all the other mortgages in your pool had less than average forecloures. YEA! and tonight you’re going to win Powerball.

PMI and FHA - Posted by Ron

Posted by Ron on March 16, 2003 at 11:50:32:

Basically, is there anyway to get rid of PMI on FHA loans?

I have 3 single family homes with the old FHA 203(k) loans that have plenty of equity.

A 4th home is just an old FHA loan with adequate equity.

All are investment not owner occupy.

I understand the reasons for PMI and that it can be waived when you reach 20% but I’ve heard it can’t be removed from FHA loans regardless of equity.

It’s really an unnecesary expense if the lender is fully protected.

Thanks for any help anyone can offer.

Re: PMI and FHA - Posted by Don Dion

Posted by Don Dion on March 19, 2003 at 02:36:32:

The answer technically to your question is YES, since FHA loans never had PMI. hehe That is a mortgage fopa since FHA loans have MIP (Mortgage Insurance Premium).
The long answer is no every FHA loan has the MIP. If you have 20% equity refi to a conventional loan.

Re: PMI and FHA - Posted by wm-pa

Posted by wm-pa on March 16, 2003 at 17:11:39:

Just went through the same problem with my own house. Had an appraisal done. I bought the house for 86K with 5% down in May 98. Just appraised for 131K. I called to see if I could have the $440 year PMI removed, now that I had 20% equity. The bank said no, and that for the life of the loan I would have to pay the PMI. Well I refinanced and cut out the PMI, just got a $523.40 refund check from HUD for the unearned portion of my PMI. I should have done this much sooner. Could have saved $2,000.

Refund - Posted by GMann

Posted by GMann on March 16, 2003 at 13:32:38:

Check out this link. You can follow the directions and see if you can get a refund.

Re: PMI and FHA - Posted by David Krulac

Posted by David Krulac on March 16, 2003 at 12:19:55:

my understanding is that the mortgage insurance, technically not PMI, but like PMI can not be removed.
That FHA forces you to refi.