Miami, FL · Member since 2017 · 14 posts · 3 votes
Hi,
I received this information from my lender today in regards to an FHA loan.
"With 5% down on a 400k property you are looking at an upfront MI of $6,650 ( onetime fee for FHA), which can be included in loan amount and a monthly payment of $251.21 at .80%"
Is this accurate? I thought it was one or the other.
I received this information from my lender today in regards to an FHA loan.
"With 5% down on a 400k property you are looking at an upfront MI of $6,650 ( onetime fee for FHA), which can be included in loan amount and a monthly payment of $251.21 at .80%"
Is this accurate? I thought it was one or the other.
Thanks for your input!
-Denis
FHA charges a monthly premium which on a 30 year fixed is .85% and an UFMIP. You can include this in your loan or raise your rate to cover the one time fee. This is standard with FHA and there's no way around it.
Lender · Costa Mesa, CA · Member since 2017 · 51 posts · 19 votes
9y
Shaun is correct - you pay 1.75% upfront MIP at the time of origination, and then you pay 0.85%/12 as a monthly mortgage insurance premium if you put less than 5% down, or 0.8%/12 monthly mortgage insurance premium if you put at least 5% down.
On another note, if you put less than 10% down, the monthly mortgage insurance premium is paid for the life of loan, and if you put 10% or more down, you pay mortgage insurance for 11 years.
@Denis Moreira what are ALL the costs associated with closing on a investment property? closing, upfront mortgage, appraisal, contractor, down payment, am i missing anything?