FHA loan obtained last year, you probably need to refinance to get rid of PMI.

Jul 13, 2017
10:17:28am

fbguru All-American

They made it harder to drop in 2013. It isn't just the 20% any more. If you had less than 10% down payment and a 30 year loan, your only real option is to refinance out of the FHA loan.

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fbguru

Bio page: fbguru
Joined: Jul 12, 2008
Last login: May 19, 2024
Total posts: 15,343 (78 FO)

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Messages

Author

Time

Anyone have experience eliminating PMI based on appreciation rather than payoff?

CaliWG

7/13/17 10:08am

Don't you just need an appraisal? If it comes in at 20%, you're good.

rggee

7/13/17 10:10am

Doesn't matter how you get to 80%LTV, appreciation is most common.

BYUFBDAD

7/13/17 10:12am

Not true with FHA, especially under (not so) new rules.

fbguru

7/13/17 10:18am

Missed the FHA part. Back to the CB pros on this...

BYUFBDAD

7/13/17 10:25am

Just noticed you have an FHA loan....I don't think you can eliminate PMI at 20%

rggee

7/13/17 10:15am

Depends on when he took out the loan.

cougsrule

7/13/17 10:18am

18 months ago

rggee

7/13/17 10:18am

FHA always will have MI then.

cougsrule

7/13/17 12:07pm

Unless it's changed, you can't do that with an FHA loan. They value on the

Skeptical Optimist

7/13/17 10:15am

FHA loan obtained last year, you probably need to refinance to get rid of PMI.

fbguru

7/13/17 10:17am

This is correct. If you did the loan after June 2013, have a 30 yr loan, and had

Pick-Six Coug

7/13/17 11:31am

FHA has different rules

camp_chef

7/13/17 10:18am

That 5 years and 78% is outdated, it's almost impossible without refinancing

fbguru

7/13/17 10:20am

it is completely impossible. FHA has life of loan MI now.

Dbl Nickel

7/13/17 10:23am

True, unless original down payment was over 10%.

fbguru

7/13/17 10:25am

Ya, then it's for 11 years

TonyStark

7/13/17 11:04am

But you can refinance to a conventional loan, right?

rggee

7/13/17 10:25am

Yep, that's the only way on an FHA loan taken out after June 2013.

fbguru

7/13/17 10:26am

This is 100% wrong.

TonyStark

7/13/17 11:03am

FHA loans never remove the MI. You will need to refinance out of the FHA loan.

Dbl Nickel

7/13/17 10:20am

Regarding your last line- or sift through the boardmails you are sure to receive

fbguru

7/13/17 10:23am

That's why I bought down the rate as low as I could because I knew that

byubyu

7/13/17 10:42am

Was the loan a 30 yrs loan, 10% down or less, and opened after June 2013?

Pick-Six Coug

7/13/17 11:35am

Yes, we bought our house in CA with 5% down

JOPE

7/13/17 11:45am

That's what we're saying. You didn't eliminate PMI on the loan, you refinanced

Pick-Six Coug

7/13/17 11:52am

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