Zillow Advice: Mortgage - FHA 5 year PMI rule http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ Zillow Advice | Zillow Real Estate A lot of factors come into ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ A lot of factors come into play on whether or not it makes sense. &nbsp;A side by side comparison of your current mortgage and a new one will allow you to make an educated decision Fri, 04 Jul 2014 22:32:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2014-07-04T22:32:00Z What is the typical time ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ What is the typical time of "no-return" in this situation? &nbsp;I am into my 30 yr FHA for 2.5 yrs. &nbsp;Is it still worth even considering this assuming my current interest rate is very low.<br/><br/>Thanks<br/>Coy Fri, 04 Jul 2014 20:35:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2014-07-04T20:35:00Z Thanks Wayne..you have given ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ Thanks Wayne..you have given me plenty to think about.&nbsp; I have been pre-approved for the new house without the first selling.&nbsp; Tue, 16 Oct 2012 22:39:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-16T22:39:00Z Your scenario is complicated ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ Your scenario is complicated and you need an experienced lender. Ask your lender to give you prospects of a 5% down 15% second loan, or 5% down with MI.&nbsp; I am assuming you have already been pre approved without your current house selling/closing. Because FHA MI remains for 5 yrs and is HIGH cost, it is important that you exhaust all other options.<br/>If your lender is not up to the task, Clay would be an excellent replacement. Read his previous posts over the past yr or so if you want a comfort level that he has the expertise you need. Tue, 16 Oct 2012 20:51:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-16T20:51:00Z Thanks for the advice. &nbsp;The ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ Thanks for the advice. &nbsp;The new house is a foreclosure and the price just dropped 60k making it a very good deal. &nbsp;I want to go ahead and snag it before someone else does but my current home is not yet ready to go on the market. &nbsp;(all of this is assuming the inspections turn out okay) &nbsp; I am actually&nbsp;going&nbsp;to take next week off work to paint and spruce up the current house to get it listed. &nbsp;So, there is a possibility my current house will sell before the new one closes but the chances are slim. &nbsp;&nbsp;<br/><br/>The reason I was going with FHA is I don't have loads of cash. &nbsp;I could do 10% but it would be tough. &nbsp;My thinking was it was better to do the low down payment and then pay down with the equity in my current house once it sells. &nbsp; &nbsp;<br/><br/>Suggestions?<br/><br/>Hmm, I am starting to feel like I am doing the legwork for my lender. &nbsp;:( Tue, 16 Oct 2012 17:36:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-16T17:36:00Z Clay gave good advice...... ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ Clay gave good advice...... 5% would be min down with 15% second though 10%&nbsp; down may be min in your area. (Clay can answer that, too since he is in GA)&nbsp; Ask Clay thru his profile if second lien lender(s) would have an issue if your current house is not closed simultaneously.&nbsp; I had that issue on a similiar scenario. A conventional loan with MI would <strong>even</strong> be a better option than FHA with 1.20-1/25% monthly MI and 1.75% upfront MI..........<br/>It is a little confusing about whether new house is ready and your intent is to close before your current home sells and closes.&nbsp; If plan is to close on your current home at or before new house is finished, obviously you will be able to do a 60% LTV conventional loan. Tue, 16 Oct 2012 02:18:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-16T02:18:00Z You must continue to pay ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ <p>You must continue to pay the Monthly Risk Premium for 60 months even if you prepay the principal balance down to below 80%.&nbsp; Also, the amount of equity you need after 5 years is 22%-not 20%.&nbsp; There is no reason to prepay the balance down after you sell your house.&nbsp; You can invest it for 5 years and then apply more down at that time.<br/><br/>Andy Williams<br/>President<br/>Abacus Regional Mortgage<br/><em>[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]</em><br/>NMLS # 118317</p> Mon, 15 Oct 2012 19:08:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-15T19:08:00Z I call it a bridge loan because ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ I call it a bridge loan because it simply serves to structure the loans in order to bridge to the future sale, then payoff. Mon, 15 Oct 2012 17:11:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-15T17:11:00Z Thanks. &nbsp;Is a piggyback ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ Thanks. &nbsp;Is a piggyback the same thing as &nbsp;bridge loan? &nbsp;My lender told me bridge loans are no longer offered due to market conditions. &nbsp; Mon, 15 Oct 2012 16:57:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-15T16:57:00Z The drop % is 78% on FHA ... http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ The drop % is 78% on FHA loans. The only way to avoid paying MI for 5 years is to get a 15 year Fixed term so that the monthly MI stops after the prepayment. It will last 5 years on a 20, 25, or 30 Yr term. You can avoid the upfront MI and 5 years on monthly MI payments by getting a Conforming loan with a piggyback, that way you can payoff the piggyback when you sell and left with a much smaller loan and much smaller payment. It is basically a bridge loan. &nbsp; Mon, 15 Oct 2012 16:13:00 GMT http://www.zillow.com/advice-thread/FHA-5-year-PMI-rule/464132/ 2012-10-15T16:13:00Z