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Private Lending & Conventional Mortgage Advice

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Craig S.
  • Rental Property Investor
  • Boca Raton, FL
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107
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FHA PMI Insurance Rules Are Changing

Craig S.
  • Rental Property Investor
  • Boca Raton, FL
Posted Mar 19 2013, 22:09

Hello fellow investors,

I was just informed about some upcoming FHA regulation changes to the way PMI insurance is handled and assessed. Previously and currently, if you had a 30 year loan with a LTV greater than 78%, you would have a mandatory 5 years of PMI, even if you ended up having over 80% equity in less time.

FHA is changing the rules so most people will have PMI insurance which can NEVER be removed from the FHA loan. If you have a 30 year mortgage and greater than 90% LTV, you will have to pay PMI insurance for the life of the loan (30 years). This supposedly goes into effect on new loans starting 4/1/2013. Luckily my first property is under contract and hopefully I will close before 4/1/13.

Read more on the HUD website here: http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf

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