If you refinance your home into FHA loan and have 20% equity do you still need monthly mortgage insurance?

Posted on Oct 21, 2012 in FHA Information

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Castle Leslie
castle
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Castle Leslie

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Castle Leslie
castle
Image by Sean MacEntee
Castle Leslie

For a lot more houses click right here…
Question by dgoldenboy67: what is the income and credit requirement for a VA home loan of 0, this 000. ?
I had filed for chapter 13 in 07 for medical reasons, seek but the case was dismissed. Where doI go from here. My credit score is only now 550. My income is $ 80, erectile 000.
Thanks

Best answer:

Answer by Sofa King
You need to make about 160,000 a year to afford a $ 350,000 loan.

[edit] You’d also need 87,500 (20%) down + closing costs, etc.

Know better? Leave your own answer in the comments!
Question by Sherry: If you refinance your home into FHA loan and have 20% equity do you still need monthly mortgage insurance?

With 30 year FHA loans the monthly MI is in place for the life of the loan.

Kind regards, online

Geoff Johnston

Mortgage Relief Specialist

GovernmentRefinanceAssistance.com

480.219.0585 (direct)

760.888.8293 (fax)
After finding the governmentrefinanceassistance.com web site I ask this question of refinancing into an FHA loan with LTV being less than 80% would monthly mortgage insurance still be required and the answer is (yes with a 30 year loan) I wouldn’t have believed it if I hadn’t heard it from a government web site! Any thoughts?
Thanks, Sherry
The reason we went FHA is the processor told me her scores were to low to do conventional cash out refinance.

Best answer:

Answer by Lee N
Typically, treat no. PMI usually is not required if you have equity at 20% or higher. The problem is that right now the value of your home may not be what you think it is. Lenders and appraisers are being a lot more conservative. Good luck to you.

What do you think? Answer below!

4avg.rating 13 votes.

3 Comments

  1. No

  2. given the equity in your home is at 20% then yes you can re fi your loan. However, you may not need to pay the costs of the re fi by just going to the note holder and drop the mortgage ins.

  3. With FHA, YES.

    FHA requires PMI for the first 5 years on EVERY loan….that is what makes it different from other loan programs.

    However, my question for you is: If you have 20% down, then why are you going FHA at all?