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.

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