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hey Jackie! Maybe you did what my husband and I did when we purchased our condo...we did a piggyback loan. In other words, we did a 1st mortgage of 80% and then a HELOC loan for the rest. In today's market, they do not do these loans anymore. The piggyback loans did not require PMI b/c you were taking only 80% out for your 1st mortgage. Anything over 80%, requires PMI.
Not sure if anyone cleared this up yet but with an FHA you will pay PMI (about $160/month depending on home price). You will also pay a 1 time MIP fee that actually gets financed into your loan (about $6,500 for me) and it actuall comes out of ur downpayment somewhat. If you bought a house for 300,000 and put down 3.5% ($10,500) your loan amount will actually be 300,000 - 10,500 = 289,500 + 6,500(MIP) = 296,000.
This is how he explained it to us except with different numbers. So it sounds right.
This may be a dumb question but what if someone bought a short sale using an FHA loan and had about 20% equity upon purchasing the home...what would the owner have to do to eliminate the PMI payment sooner than 5 years?
We acutally have a VA loan, and the company we use doesn't charge PMI's.
we have 100% financing on our condo, we didn't need to put anything down and we didn't have to do the piggyback either.
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