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clarification VA/FHA

Profile picture for Caveat Emptor
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Since January 2009

what is the upfront mortgage insurance premium for a LTV between 70-80%? (and a respectable credit score)

VA eligible refi:
FHA refi:

rough, rough estimates are fine
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November 04 - US
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Profile picture for ColoradoLender
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VA eligible refi: 0.5 on streamlines, 2.15 first time use, 3.30% subsequent use.  With service related disability funding fees are waived.

No reason to use an FHA loan at those LTVs with a resepectable credit score.

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November 04
Profile picture for keaneloans
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It would make more sense to go conventional IF the borrower has a good score. 

If the homeowner has a 640 fico score, even with 20% down, the VA would make more sense. 
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November 05
Profile picture for CA UMB
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You are too sharp to be asking this question.

As long as you've been on these threads you know anyone that has 20% or more for a down payment would not consider paying for an insurance product that doesn't provide protection for them.

There would be no benefit to the borrower to procure a FHA or VA loan or pay MI in any form. Any lender that would suggest a FHA or VA loan on this scenario would be doing the borrower a disservice.
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November 05
Profile picture for Georgia Loans
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I agree with Nic, however the MMI is .50 if 95% or less on terms over 15 years, FHA. NTETS, if the score is " respectable " and LTV is 70%-80%, what's wrong with conventional?
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November 05
Profile picture for Caveat Emptor
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the original purchase used more than 30% down, unfortunately the addition of PMI generally has made refinancing not cost effective for a traditional. the rate is still over 6%.

no, not for me directly.
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November 05
Profile picture for NetworkFunding
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FHA loans charge 1.75% for upfront premiums and .55% for monthly premiums EVEN if you have 20% or more equity unless you go 15 years.  And you are required to pay the MIP for 5 years on FHA loans.

VA....no monthly MIP...best way to go if you are eligibile
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November 04
Profile picture for keaneloans
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Listen to Nic below for your answers on VA.

FHA loans charge 1.75% for upfront premiums and .55% for monthly premiums EVEN if you have 20% or more equity.  For this reason, Nic's advice is correct.

However, if you're looking to do a 15 year loan, it's worth looking at FHA.  The 1.75% premium still applies but no mortgage insurance.  In that scenario, it may be worth going FHA.  The upfront premium is less if compared to a non-streamline VA refinance.  Also, as Nic mentioned below, subsequent uses of your VA eligibility leads to a higher Funding Fee.  If you have not used your VA certificate and are looking for a 15 year loan, a FHA loan would probably make more sense.
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November 04
 

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