FHA is a beautiful loan program, but if you asked me what I don’t like most about it I would have to say the monthly MI rates have creeped up.
The monthly mortgage insurance factor for FHA is now 1.25%.
A viable alternative to FHA with much lower monthly mortgage insurance is a little used conventional program called My Community.
My Community only has a 3% down payment (compared to 3.5% with FHA).
The monthly mortgage insurance factor for a 97% mortgage is only .18% (compared to 1.25% with FHA).
The monthly mortgage insurance factor also goes down on My Community as the loan to value ratio is lower. …Where FHA charges 1.25% no matter what the initial LTV on a 30 year mortgage.
My Community will also go down to a 620 credit score!
…Something to think about if you are looking for a low down payment, and low monthly MI program!
That’s it for today!
Brett
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