Posted on: 16th Oct, 2009 08:36 pm
My husband and I are in the process of buying and house FHA and 3% down. My grandmother just emailed saying that if we have a co-signer we don't need PMI is this true?
unless your grandmother works for hud, i am afraid to tell you that fha loans require mortgage insurance in all cases. if she's talking about private mortgage insurance being inapplicable for an fha loan (with or without cosigner), then that's true. all fha loans carry "mortgage insurance premium" - MIP in the parlance. there simply are no exceptions. cosigners, low ltv's, etc. make no difference. it's the law.
Also now the down payment requirments have changed
You will need 3.5% down and MIP of 1.75%
You will need 3.5% down and MIP of 1.75%
