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How Do I Remove My FHA Monthly Mortgage Insurance On My Home Loan?
Want to get rid of your mortgage insurance?
If you purchased a home on the FHA home loan program and the FHA case number was issued after June 3rd 2013 and you put less than 10% down payment when you purchased your home, you will have the monthly mortgage insurance throughout the term of the loan. How does that sound to you, that is a long time to have insurance on a loan that will eventually gain equity of the life of the loan.
Lets get rid of that insurance and start saving for you instead of paying to HUD. The only way to remove the FHA mortgage insurance is to refinance out of that loan into a Conventional or VA home loan program. If you put 10% or more down payment at the time of purchase, then you will have mortgage insurance for at least 11 years after the close of escrow.
After June 3rd 2013, HUD updated the amount of time you must have mortgage insurance on the loan. The FHA loan served it’s purpose by getting you into homeownership with very little down and less underwriting requirements that a Conventional home loan program has. With a Conforming Conventional loan, you must come in with 5% down, a strong credit score, 2 months reserves of the mortgage payment and must wait longer time from a bankruptcy, short sale or foreclosure to purchase a home.
The FHA home loan program does not have as strict guidelines as Conventional, but now that you are in the home, it should have some equity and you should have a stronger credit score to explore the option of refinancing your current FHA home loan into a Conventional loan program to remove the monthly mortgage insurance.
The toughest part probably was purchasing the home, now that you are in the property, it is time to place yourself into some long term financing and remove the FHA/HUD insurance. It does not hurt to speak with me regarding your options and if you are not in the position to refinance, I will advise what you need to do to get in that position.
Stop throwing your money away with that added fee that does not pay down your mortgage, save that money. Image what you can do with some freed up money, pay off some credit cards that you used to purchase furniture with.
How Do I Remove My FHA Monthly Mortgage Insurance On My Home Loan?
by Nathan Rufty
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