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If I put down 20%, can I qualify for FHA without PMI or MIP? thank you

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May 31 2009 - West San Jose
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Answers (4)

There are many reasons to seek FHA financing.  One of those reasons is because FHA tends to have more relaxed qualification criteria (credit score, income-to-debt ratios, non-occupant co-borrowers, etc.).  The other main reason is due to low down payment requirements (currently 3.5% minimum).  Any FHA loan will carry an up front MIP funding fee of 1.75% of the loan amount.


Conventional rates are fairly low right now and will be a better option if you're putting such a substantial amount of money down.  I think you should consider all your options.  I'd be more than happy to schedule an appointment with you to go over your specific needs and concerns.

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June 12 2009
FHA loans are for people who do not have 20% to put down or who have poor credit or both. If you have good credit and 20% down you would naturally apply for a conventional loan.
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June 04 2009
Yes, you will still have to pay up front MIP of 1.75% and annual MIP is you are financing on a 30 year program.

But, why go FHA if you have 20% down? 
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June 04 2009
Profile picture for lyn21
All i know is this you qualify for conventional loan if u pay 20% or more.
and if the buyer cant come up with 20% down or more then you ask for FHA.
which FHA required an UPRONT PMI plus the closing cost
with the conventional loan with 20% down
You wouldnt need to pay for the PMI
closing cant be discussed with the seller.
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June 04 2009
 
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