If FHA mortgages are insured by the government why do some lenders still require / charge you for PMI?

Posted on Sep 14, 2012 in FHA Information

HARP Reputation Remains Robust
HARP, rx visit web the House Affordable Refinance Plan, for sale was expanded to take away loan to worth caps so that the plan would be offered to a lot more borrowers. Homeowners who have mortgages that had been sold to Fannie Mae or Freddie Mac prior to June 1, price 2009 …
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HARP two. Dominates Conforming Mortgage Landscape In Some States
The Property Cost-effective Refinance Plan (HARP) is a government refinance program meant for homeowners whose houses have lost value. It was initially launched in … The Freddie Mac version is identified as &quotRelief Refinance&quot. Both applications do the precise …
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Question by Lisa P: If FHA mortgages are insured by the government why do some lenders still require / charge you for PMI?
From what I have read, pharm FHA mortgage loans are backed by / insured by the government, link so how are lenders also allowed to require / charge you for PMI (Private Mortgage Insurance) on FHA loans?

Best answer:

Answer by bailie28
because the pmi isnt on that loan its on the part of the loan that couldnt be financed under those terms right? at least i know thats how it was going to be for us until we realized we could still use the va loan even though we already owned another house….thank god because the pmi was all a rip off to me…

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One Comment

  1. because is is not 100% Guaranteed by FHA only 80% and the Gov wants to make there money back.