Posted on: 18th Mar, 2008 04:05 am
What is an acceptable or minimum down payment for a FHA secured loan? If you are less than 80% LTV is PMI required? What happens once you reach 80% LTV?
Hi Gabe,
The down payment required for FHA loan can be as low as 3% of the purchase price of the home. However, under the Senate Bill approved in December, 2007, lenders may ask for down payment as low as 1.5% of the purchase price. But this is not yet applicable as far as I know.
FHA loan does not require PMI. Rather it requires you to premiums on FHA loan insurance for which you make an initial payment and then monthly premiums.
Take Care
The down payment required for FHA loan can be as low as 3% of the purchase price of the home. However, under the Senate Bill approved in December, 2007, lenders may ask for down payment as low as 1.5% of the purchase price. But this is not yet applicable as far as I know.
FHA loan does not require PMI. Rather it requires you to premiums on FHA loan insurance for which you make an initial payment and then monthly premiums.
Take Care
Gabe,
When you reach 80% LTV, the FHA insurance can be cancelled. This has been discussed earlier at http://www.mortgagefit.com/discuss/pmi-fhaloan.html#1184 .
When you reach 80% LTV, the FHA insurance can be cancelled. This has been discussed earlier at http://www.mortgagefit.com/discuss/pmi-fhaloan.html#1184 .
If you put 20% down, you are still required to pay the 1.5% funding fee.
2.25% is the minimum down payment, and can be used to pay the fha funding fee. The funding fee can also be rolled into the loan amount.
You will be paying a 0.5% monthly mortgage insurance premium.
2.25% is the minimum down payment, and can be used to pay the fha funding fee. The funding fee can also be rolled into the loan amount.
You will be paying a 0.5% monthly mortgage insurance premium.
