PMI with an FHA loan

[Thomas Clark]

I'm not sure if this qualifies as creative nonetheless... just a curious question can someone with an FHA loan also use PMI on TOP of the loan??

The reason why I am asking is because I'm looking at fourplexs in my area and it seems the average price is $ 200,000. The the lowest downpayment FHA loans allow is 3.5%), so I would need $ 7,000 cash not including closing cost. Saving around 10,000 would take me twos so if I'm able to get by with a lower down payment I will gladly do so..

I understand  concerns that the lower the down payment  the bigger your mortgage and that banks offering low money down loans partly caused the recession.... But I don't believe those risk apply to me because I plan be an owner occupant, I have a pretty good credit score (720)  and a combine income with my spouse of 70K (no children yet). 

[Matt Turbitt]

Just to clarify a little, with an FHA loan there is upfront pmi AND monthly pmi. With a conventional (non fha mortgage) you can put between 5%-19% down (depending on lender) and you'll only have monthly pmi.

I'd encourage you to sit down with a few lenders, it can be a little intimidating at first expecially when your not ready to buy yet but it's really the best time. Explain when your goals are and have them walk you through what it would look like and what's needed to get there and what the finances would look like.