MAJOR Changes To PMI Requirements For FHA Mortgages

changes to pmi requirements for fha mortgages

Are you considering buying a home using an FHA mortgage?

Effective June 3, 2013, PMI (private mortgage insurance) will be required for the life of any FHA loan.

Currently, PMI disappears after 22% of the principal is paid on the home OR after 5 years, whichever is longer.

This new requirement will DRASTICALLY change the FHA mortgage program, pushing many potential buyers that much further from home ownership.

Some banks are offering programs that will cut the PMI with a larger down payment. Speak to your mortgage broker for more information.

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