Question:

What are the most common differences between FHA mortgage insurance and private mortgage insurance (pmi)?

Answer:

There certainly are differences between FHA insurances and PMIs (private mortgage insurances). Although similar in concept, the FHA mortgage insurance, administered by the government, has more limitations, such as lower limits on the maximum loan amount compared to the PMI's. Often, the FHA mortgage insurance may be more expensive and takes more time to get approval. Payment options will also be less.

Also, while it is possible to cancel a PMI in most circumstances, an FHA mortgage insurance will last for the life of the loan.

However, if you are a troubled customer with a far than perfect credit score, you may want to take advantage of the special assistance offered by the FHA.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage