skip to Main Content

Does an FHA Loan Require PMI?

If you have been shopping around for different mortgage options, you’ve likely come across the FHA Loan. This mortgage is administered by the Federal Housing Administration. It allows home buyers to purchase a home with a low down payment, often as low as 3.5% of the purchase price. There are a few stipulations to use the FHA Loan as well as additional steps that you’ll need to take to pay it back.

Does an FHA Loan Require PMI

Just like with any mortgage, you must qualify for the amount of the purchase. Your lender will look at your debt-to-income ratio as well as the home value and other factors. Overall, they want to determine if you are in a financial position to pay the loan back. The Federal Housing Administration does not actually issue the loan. Instead, they guarantee the amount. You will work with an independent lender who works with the FHA to offer this type of mortgage.

Is PMI Required?

When using an FHA Loan, you will need to pay for private mortgage insurance, PMI. This extra amount is added to your monthly payment. Once you reach a higher amount of equity, either through paying your mortgage down or a significant change in the housing market, you may be able to refinance your loan so that you no longer have to pay PMI. Depending on how much you put down a down payment, this premium may no longer be required after 11 years.

Who Can Use an FHA Loan?

The FHA Loan is a good option for first-time home buyers or those who don’t have a hefty down payment saved up. This is not a requirement, however. Anyone can apply for an FHA Loan, even if they have purchased a home before. There are not income limitations or requirements beyond what your lender requires to approve you for the amount that you want to borrow.

Equity Now

Looking to buy a new home or refinance your existing mortgage? You can trust Equity Now, a direct lender with almost 40 years of experience in the industry, to provide you with exceptional service and great rates.  Check out our reviews to see what our clients think.

Our team of experts is dedicated to guiding you through the home buying process, evaluating your application in-house, and finding the right mortgage solution for your specific needs. We offer a variety of mortgage options, including purchase mortgages and refinance mortgages, to help you achieve your financial goals.

At Equity Now, we understand that buying a home or refinancing your mortgage can be overwhelming. That’s why we’re committed to making it easy for you by handling everything in-house and making lending decisions quickly, so you can close in as little as two weeks.

We’re licensed to lend in five states – New York, New Jersey, Connecticut, Pennsylvania, and Florida – and we’re approved by the U.S. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac, VA, and FHA. We pride ourselves on being a direct lender, which means we have the flexibility to make lending decisions quickly and efficiently.

Our great rates and exceptional service have earned us a reputation as one of the best mortgage lenders in the business. We’re committed to providing our clients with the best possible rates and making the home buying or refinancing process as smooth and stress-free as possible.

Don’t settle for less than excellent rates and outstanding service. Contact Equity Now today to start your homebuying or mortgage refinancing journey with a trusted direct mortgage lender. We’ll guide you through the process and provide you with the best possible rates so you can achieve your financial goals and realize your dreams of owning a home.

Back To Top
Translate »