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New Rules for FHA and Conventional Loans Could Save You Money

New Rules for FHA and Conventional Loans Could Save You Money - Quicken Loans Zing BlogThe Obama administration recently announced a reduction in mortgage insurance premiums for FHA loans of 50 basis points, or half a percent. The administration expects this to save more than 2 million homeowners an average of $900 each year.

A separate program expands the 3% down payment option for conventional loans. This was initially offered to first-time home buyers, but it makes loans more affordable for people with lower to moderate incomes as well.

Here’s some more information on how you can take advantage of these opportunities and save money.

Lower Mortgage Insurance Premiums

Mortgage insurance premiums (MIP) are required for all FHA loans. They protect the lender in case a client should default. However, they also benefit the homeowner by enabling them access to a mortgage with a lower down payment, which can be as little as 3.5%.

Don’t confuse this with private mortgage insurance (PMI), which is applicable only to conventional loans. Conventional loans require a 5% down payment. PMI can be removed once loan-to-value ratio (LTV) reaches 80%. Unlike PMI, MIP lasts for the life of the loan.

What does this mean in practical terms? I’m glad you asked.

Here’s an example: On an FHA loan, if you make the minimum down payment of 3.5% (96.5% LTV), your MIP would be 1.35% of your mortgage amount under the previous policy. So if you have a $100,000 mortgage, you’d pay $1,350 annually. With the newly announced 50-basis-point reduction, that rate has dropped to .85%. So with that same loan amount, you’re now paying $850 for mortgage insurance, thus saving $500 per year.

David Altesleben, an FHA product manager at Quicken Loans, discussed the benefits of these changes for clients beyond the insurance savings.

“Reduced MIP results in an increase in a borrower’s purchasing power,” he said. “The less money a client needs to pay for MIP equals the more they can qualify for from a principal and interest standpoint.”

From a refinance perspective, clients with debt-to-income (DTI) ratios on the higher side may now be able to qualify because the fees associated with MIP have gone down.

There’s just one catch: The rate reduction in MIP only applies to loans with terms of more than 15 years.

Despite the insurance requirements, there are some definite advantages to FHA loans. Not only do they have lower down payment requirements, but clients with credit scores as low as 580 can be eligible for this loan option (although their DTI will likely have to be in really good shape to qualify).

3% Down on Conventional Loans

Last month, we talked about a 3% down payment program for first-time home buyers. Now, the program has expanded beyond first-time homebuyers to also include borrowers with moderate and lower incomes. This 30-year-fixed loan is a more affordable option than a traditional conventional loan which requires a 5% down payment.

Home buyers must fall within certain income limits to be eligible, and this option requires a higher credit score than FHA, but this could be a good deal for someone looking for an affordable mortgage. This option also allows homeowners to have their PMI removed once they have 20% equity in your home.

There’s also a nifty little trick to save on PMI. It stems from the fact that the loan to value ratio (LTV), a comparison of your loan amount with how much equity you’ve built up in your home, is calculated differently on a refinance than it is on a purchase.

Let’s imagine you have the following scenario:

(a). Loan amount: $200,000

(b.) Purchase Price: $220,000

(c.) Home value: $230,000

On a purchase, your LTV is your loan amount divided by the lower of the purchase price or the home value. In the example above, since the home was purchased for less than its value, A/B = 0.91 or 91%.

In a refinance situation, the LTV is always calculated by dividing the loan amount into the home value. In other words, A/C = 0.869 or roughly 87%. Since PMI can be taken off conventional loans once LTV is down to 80%, this is a better deal for the client. Refinancing means they can pay off PMI sooner even with the same rate and loan amount.

You can take advantage of this option for both purchase and rate/term refinances. Cash-out refinances are ineligible.

Do either of these options appeal to you? Let us know in the comments section.

This Post Has 89 Comments

  1. I’m in the processes of buying my second home, I qualified for a FHA at 3.5% and a conventional loan at 5%. I Just want to know which a better option for me would be.

    1. Hi José:

      That depends on what you’re looking to accomplish. FHA loans offer a lower down payment and if you have a high credit score, you can qualify for a higher purchase price then you might be able to on a conventional loan due to relaxed debt-to-income ratio (DTI) requirements. On the other hand, if you make the minimum down payment of 3.5%, you’ll pay mortgage insurance for the life of the loan. If you make a down payment of 10% or more, you pay mortgage insurance for 11 years.

      Turning to conventional loans, the mortgage insurance on those can come off at your request once you reach 20% equity, pending an appraisal to make sure your house hasn’t lost value since you purchased it. You also have to be current on your loan. You also have the option of avoiding a monthly mortgage insurance payment altogether by taking a slightly higher rate and opting for lender-paid mortgage insurance (LPMI). These are just a couple of the factors, but I’m also going to give you this blog post which goes into greater detail.

      One of our Home Loan Experts could also help you decide which is right for you if you give us a call at (888) 980-6716. Have a great day!

  2. My husband and I got an FHA loan on April 2011.
    When can we stop paying MIP.. or is it for the life of the loan?

    1. Hi Missy:

      Assuming you haven’t refinanced your original FHA loan, MIP does eventually come off because your case number would have been assigned prior to June 3, 2013. In terms of when it comes off, there are a couple of different scenarios depending on your loan term.

      If you have any term other than 15 years, MIP automatically gets removed once you reach 22% equity as long as your current on the loan and haven’t been late in the last year, provided you’ve paid MIP for at least five years. On a 15-year term, as long as the loan is current and you’ve reached 22% equity, MIP is removed regardless of how long you’ve paid the premiums. Hope this helps!

  3. I have a FHA loan that I required after 2013. The bank told me that I haveto pay PMI until the life of the loan. If I reached the 20 percent in my loan. Why I still have to pay PMI on a FHA loan? what options can I do ? If I don have want to refinance . What can I DO ?? The bank can reduce the PMI?

    1. Hi Felix:

      You have to continue paying mortgage insurance premiums for the life of the loan if you got it after June 3, 2013 if you didn’t make a down payment of more than 10% at the time your loan closed. The only thing you can do is refinance. The bank doesn’t have the option to reduce the mortgage insurance premiums because on FHA loans, those are set by the government and it’s government policy. If you would like, you can look in your options with Rocket Mortgage or talk to one of our Home Loan Experts at (888) 980-6716.

  4. My husband and I have been looking into mortgage options. We currently have been in our house since 2008 at the time making only 60,000 combined salaries we did an FHA loan. We are looking in to moving in about a year and will be selling our current house. We currently make about 150,000 combined. Will we need 20% down for a conventional mortgage or can you put down less with a conventional mortgage (we would just have to pay PMI)? Or is it possible we could qualify for FHA again?

    1. Hi Jill:

      You can qualify for a conventional loan by putting as little as 1% down. He would just have to pay PMI until you get 20% equity in the home. You could qualify for FHA again, assuming your credit score is the same or higher. However, you would be better off going and conventional because in most cases mortgage insurance stays on FHA loans for life. If you would like to look into your options, you can get a preapproval online through Rocket Mortgage. If you would prefer to get started over the phone, give us a call tomorrow at (888) 980-6716 and one of our Home Loan Experts would be happy to work with you.

      Thanks,
      Kevin Graham

  5. My husband and I would like to purchase a new home. We currently live in my house, which I will keep after we move and put up for sale after some remodeling is completed. I am upside down on my home and owe about $20,000 more than the home is worth (house is in my name only). Together we have an income close to $200,000. His credit score is in the high 600s and mine is close to 800. We are currently trying to pay off most of our revolving credit before buying a new house, but that has left us saving very little money at the end of each month. My husband will be a first-time homebuyer, but I think he makes too much money to qualify for any downpayment assistance. He wants to apply for the home loan in his name but I think it would be better to do a joint loan. What are the pros/cons of doing that? I think we will only have 5% to put down on a home. Is a conventional loan the only type we would qualify for (I don’t want to go FHA)?

    1. Hi Lisa:

      The pros of a joint loan would be that you could qualify for more because you would be using both of your incomes to qualify. That being said, if you want to qualify for down payment assistance, you might use his income alone because of limits. However, as you said, it depend on how much income he makes. If you are looking at down payment assistance, you may have more options through FHA.

      The only other loans we do besides conventional and FHA are VA loans right now. In order to qualify for that, one of you would have to be a veteran or serving active duty.

      If you want, I think the best thing for you to do might be to speak with one of our Home Loan Experts by filling out this form or calling (888) 980-6716. They would be able to go over all of your potential options.

      Thanks,
      Kevin Graham

      1. Down payment assistant programs take into account HOUSEHOLD INCOME not only the borrower’s income. So, that wouldn’t help.

        1. Hi Carlos:

          In many cases, this may be true, but without looking into the specifics of each program, that may be a bit of a broad statement. Thanks for reading!

  6. We are trying to do a fha cash out refinance with our home that has over 200,000 dollars in Equity but, we are still told we need to pay pmi for 11 years even tho we have a lot of equity?? Is this normal?

    1. Hi Terra:

      Unfortunately, if you go with an FHA loan, the FHA requires that you pay the FHA requires that you pay for mortgage insurance (MIP) for 11 years regardless of how much equity you have in the home. That being said, if you have at least 20% equity in your home, you could refinance into a conventional loan and avoid paying for mortgage insurance. If you would like, you can speak with one of our Home Loan Experts by filling out this form or calling (888) 980-6716.

      Thanks,
      Kevin Graham

  7. I have a private mortgage loan, with a high rate, which has caused financial difficulties. I need advice , are there programs to help lower my rate.

    1. Hi Jacqueline:

      Every situation is different, but we can certainly help you look into your options. The easiest way to get in contact with one of our Home Loan Experts is to give us a call at (888) 980-6716. Have a great day!

      Thanks,
      Kevin Graham

  8. It’s a little frustrating to think that I may have to pay $100 a month towards an insurance that’s for the bank and not for myself. I’m looking for a home in the $150k range and my credit score is above 770. Problem is; I don’t have the down payment. Instead of the 20% down; if I found a house that I could buy closer to below market value than I’ve got a chance? Why would someone sell at 80% value? If I bought a fixer-upper; I’d have to put more cash into the home as well… Are there any programs out there that reward people with better credit???

    1. Hi Adam:

      I can tell you that mortgage insurance rates improve with higher credit scores. This is also true if you have a higher down payment. If you take a slightly higher rate on the mortgage, you can get rid of the monthly mortgage insurance payment by opting into lender-paid mortgage insurance like PMI Advantage. If that sounds like something you’d be interested in, we can help you.

      If you get started online, you can use Rocket Mortgage for a preapproval. One of our Home Loan Experts would be happy to take your call at (888) 980-6716. Hope this helps!

      Thanks,
      Kevin Graham

  9. Hi, my credit score is currently at 624 and I have 5% to buy a house. Do I qualify for a conventional loan? And what documents do we need for a loan?
    Thanks!

    1. Hi Joe:

      Based on your current credit score, you would qualify for a conventional loan. However, you’re right on the borderline as the minimum is 620. I’m going to recommend taking a look at our friends at QLCredit. You can pull your credit report for free without affecting your score and get personalized tips on how to improve.

      In terms of documents, every loan product is different in that regard, but this blog post should give you some of the basics. I’m also going to recommend you talk to one of our Home Loan Experts by filling out this form or calling (888) 980-6716.

      Thanks,
      Kevin Graham

  10. I’m interested in building a home, and read about FHA’s new construct to mortgage loan. Can you give me the pro’s and con’s?

    1. Hi Mellissa:

      Unfortunately, we don’t do building loans. So we aren’t the best people to ask. I guess one con is that not everyone does them. You should be able to Google and find lenders that can help you with this.

      Thanks,
      Kevin Graham

      1. I just want to give you kudos for a great answer. I love referring people to other places (even google) when you are not the people to talk to about a subject.

  11. When you buy a house when is the best time to refinance? 1 year later or longer. Is it best to wait till you hit the 20% to take off the pmi on your loan or that should not matter

    1. Hi Elizabeth:

      There’s not really a specific time frame other than that if you were going to take cash out of your equity you have to wait six months or a year depending on the type of loan you’re applying for at that point. Beyond that, it really depends on what your goals are. You can stop paying mortgage insurance once you reach 20% equity by refinancing into a conventional loan or giving your loan servicer a call and getting it removed if you’re in a conventional loan. But, if you can save money or benefit from taking cash out, there’s not really a specific time.

      Thanks,
      Kevin Graham

  12. I am looking into. Getting my name put in a lottery for affordable housing . Can u apply for an fha loan for this

    1. I’m going to recommend you talk to one of our Home Loan Experts to go over your situation and see if we have any options. You can fill out this form to get in touch or call 888-728-4702.

  13. What is the difference between a conforming fixed and FHA loan? And what important details do I need to know when choosing?

    1. Both conventional and FHA loans are conforming. If you choose, they can also both be fixed loans, meaning the rate stays fixed for the life of the loan. The key difference between FHA and conventional loans are the credit score requirements. You can qualify for an FHA loan with as little as a 580 average credit score. Conventional loans require a 620. You can get a conventional loan with as little as 1% or 3% down. The minimum down payment for FHA’s 3.5%. FHA loans also require you to pay monthly mortgage insurance, potentially for the life of the loan depending on the size of your down payment. Conventional loans have mortgage insurance to if you down payment is less than 20%, but it can come off once you reach 20% equity. You’re also not locked into an FHA loan forever. You can refinance into a conventional loan when your credit improves to eventually get rid of the mortgage insurance. I really recommend talking to one of our Home Loan Experts by filling out this form or calling (888) 728-4702.

  14. My loan is conventional at 6% , I know harp is out of the question . I’m trying to drop interest with payment.

  15. I have had some problems with my lender: Bank of America. Why is it so difficult to get out of FHA loan and get a conventional loan with cash back? I am so disappointed to know that I don’t have the opportunity to request the cash out that I need to improve my house.Every lender states that I go over the 3% rule. Need a solution that would work .

    1. Hi Nora:

      You do need a minimum amount of equity in order to do a cash out refinance, but we would be happy to look into your options. You can get in touch by filling out this form or calling 888-728-4702.

      Thanks,
      Kevin

  16. I am a person with a permanent disability who is currently receiving SSDI and, also working part-time. My credit score is currently around 680. I was reading about FHA loans for first time homebuyers and was wondering is this going to be an appropriate option for someone in my position?

    1. Hi Dominique:

      Based on your credit score, you could have several different options available to you. I’m going to recommend you speak with one of our Home Loan Experts to see if we have an option that fits your situation. You can get in touch with us by filling out this form or calling (888) 728-4702. Hope this helps!

      Thanks,
      Kevin Graham

  17. Help!
    My credit score is around 580… but only because I am being scammed- if you know this business the explanation is: 2012: BOA sold my loan to Everbank in the middle of a loan mod. At the time I was at 6% FHA 30 year fixed and wanted a lower rate. At the time I mortgage illiterate (now I am self- studied mortgage brilliant) and didn’t realize the difference between modification and refinance (which I did in 2008) with Surepoint Lending. (Not Everbank, although that’s when they claim they took over my loan…. I don’t think they know……). Because, all was so confusing, I hired an rep from Michigan Modification Llc (highly recommended?). Well, was serviced by Everhome mortgage until May 2014, when …. Green tree (Now ditech -name changed due to horrible reputation- same account). …. forced placed insurance double MIP’s taken out of one month etc. etc. loan was transferred from Everhome to green tree/ditech 5/2014 with -440$ escrow. I have books of records and everything from 1/2014 on (saw green tree complaints and ran scared)
    It doesn’t matter. I was paid up thru 3/2016 when all hell broke loose….. they tried taking $ they weren’t owed out of my bank account and then started returning payments. Even completed payments. Because they were considering me in default….. because they made an “error” and returned my payments many times now…. they wanted “late fees”… returned my checks and undid monthly from 2015 (against by mistake ….) I have tried to pay several times (they even kept a check for over $8000 for over 45 days before returning. I have overwhelming documentation…. they don’t care… so I pay my savings account and wonder what to do. At first they had me defaulted all the way back to 11/1/2015. Tried to work with IN Attorney General (awful experience)… managed to get paid up till 3/1/2016….. then same old song and dance. Have gone to multiple lawyers,…. they will represent me when everbank files foreclosure – I’ve even checked with county courthouse, nothing ever filed….. except….. in 2013… they actually forclosed my house and then turned around and sent a loan modification approval same day …. I NEVER knew until greentree.
    Long story short – if I don’t have a nervous breakdown from this and can get them into court I will NEED a new mortgage company!

    1. Hi Katie:

      I honestly don’t know if there’s anything we can do for you right at the moment, but there are people more knowledgeable than me. If you call 888-728-4702, maybe one of our Home Loan Experts can offer some advice. I do wish you good luck.

      Thanks,
      Kevin Graham

  18. Hi,
    I’m interested in purchasing a condo. I only have 3%-5% to put down. My credit score is only about 570. Is it possible to get approved for a conventional loan with only a 3 to 5% down payment.?

    1. Also, is there any programs to assist with down payments for first time buyers? Thanks in advance for your assistance.

      1. Hi Gloria:

        Unfortunately, the minimum credit score for an FHA loan is 580 and conventional loans require a 620. We do have a service in QLCredit where you can pull your report without affecting your score and get recommendations on how to get it up. However, I’m also going to recommend you talk to someone depending on the type of condo you get, it may require a higher down payment.

        You can get in touch with one of our home loan experts by filling out this form or calling 888-728-4702.

        thanks,
        Kevin Graham

  19. I have a daughter who is 19 and has only a few moths on the job and was a college student prior to going to work fulltime. Her credit score is 680. I am willing to go on the loan with her but fear my debt to income ratio is too high. I do have a mortgage in my name that my mother pays because she lives in the property fulltime. Any suggestions? Can we do a Conventional Loan?

    1. Hi Angela:

      We can definitely help you look into your options to going on a loan with your daughter. Every situation is different so it’s probably best to talk to one of our Home Loan Experts. You can get in touch with them by filling out this form or calling (888) 728-4702.

      Thanks,
      Kevin Graham

  20. Hello, my wife and I would like to purchase a second/vacation home. She bought our house before we got married therefore my name is not in the loan/title. Could we purchase a second/vacation home and not have to put down 20%?

    1. Hi Clark:

      You can purchase a second home with a fixed-rate mortgage for as little as 10% down. If you would like to get in touch with one of our Home Loan Experts to go over this, you can do so by filling out this form or calling 888-728-4702. I hope this helps!

      Thanks,
      Kevin Graham

  21. I’m a first time home buyer and I need to find a 4 bedroom home I’m trying to buy a home with my motherinlawshe retired and have excellent credit and mines is good I have my home buyers certificate and 20k what do we do first

    1. Good afternoon, Percy. The next step is to get approved for a mortgage. You can do that at Rocket Mortgage, which uses technology to speed up the home loan process. Best of luck to you and your mother-in-law, Percy!

  22. We are trying to mortgage a new const condo with more then 20% down. We had a chapter 13 filed in 2008 and discharged in 2010. The property that was filed on did not go on forecloser until 2016 on sheriff sale. Our credit scores are in the 600’s, and was wanting to know of

    other type of mortgage we can get? Was turned down for a FHA.First was told we had a preaaproval until they seen the sheriff sale wasnot until 2016.

    1. Hi JeVon:

      The soonest we can help you with any mortgage option is 12 months after the foreclosure and the foreclosure close is when the sheriff sale is processed. Hope this helps give you a timeline.

      Thanks,
      Kevin Graham

  23. My husband and I live in Oregon currently and have an opportunity to purchase property from our mother in law in NC. It was left to her by her mother and the state has a lien on the property for $30,000. How can we go about purchasing this home? What you’re of loan? Do conventional loans allow the purchase of a home that is not the primary residence and also a home that needs major work, roof, etc?

    1. Hi Elizabeth:

      You can purchase property that’s not your primary residence with a conventional loan. It’s either a second home or investment property depending on how you intend to use it. You can get a mortgage and then fix it up afterward. The thing you need to be aware of is that the appraiser has to see that the property passes certain conditions that make it livable. I’m going to suggest you talk to one of our licensed mortgage bankers that can look into your situation and help walk you through this. If you fill out this form, I can have someone that’s licensed in your state reach out.

      Thanks,
      Kevin Graham

  24. Hi , I want to purchase a home in Maryland but I live in Florida . I have been talking to some loan officers and they tell me I would have to do a conventional loan since it will not be my primary residence. The home that I was looking to purchase was 125,000. Can someone tell how much money I would need to close on a home of this price.

    1. Hi Zachary:

      It’s difficult to tell you what the closing costs might be because it depends on the lender and the way the loan is structured. There are also some low down payment options even lower than FHA for conventional loans if you qualify. If you go through our Rocket Mortgage, you can get a preapproval in minutes and get an idea of what the cost would be. That might be the best thing for you to check out.

      Thanks,
      Kevin Graham

  25. Hi,
    My husband and I became first time home owners with FHA last year. April 2015. We put 3.5% down.
    Out interest rate is 3.875
    Since then the value of our home went up anywhere from 30k to 50k… possibly more. When we first bought the home last year, my husbands credit score was around 710. However, we did open 4 credit cards and financed a minivan since then. I’m not 100% sure what his credit score is now, but I think it’s around 650. Since my home is valued at more than we owe, could we refinance with our fha loan and get the 50 point credit to save us money every year? Is it possible to refinance and go with a conventional loan option to make our payment smaller? My husband makes about 70,000 a year and we are a family of 5. Thanks

    1. Hi Ramona:

      There’s a lot that goes into this. I’m going to have someone reach out to go over all of your options.

      Thanks,
      Kevin Graham

  26. my husband and I are looking into purchasing a vacation/rental home out of state (NC). I have never owned a home and he hasnt in over 8 years. He is former military. Are there any special loans that do NOT require 20% down?

    1. Hi Angela:

      VA loans don’t allow for the purchase of investment properties so there’s no particular help there. I can tell you you can purchase a one-unit rental property with as little as 15% down. I’m going to have someone reach out to help you go over your options.

      Thanks,
      Kevin Graham

  27. Hi my name if Felix my wife and I are looking to buy our first home our credit not great in the 600’s. Not sure about anything on getting started but want to be in a BETTER school district before the school year. We have 10 to 15,000 for down payment. was told FHA was the best way to go but I know the process is like 90s so I want to be as prepared as possible. As you can read im lost.

    1. Hi Felix:

      We can definitely help you look into all your options. We pride ourselves on having our process be as smooth as possible. I’m going to have someone reach out.

      Thanks,
      Kevin Graham

  28. Hello Kevin,

    I am a high school teacher making about 52K a year with 10k as a possible down payment. I have been approved for 325k for an FHA loan but I am wondering how I can qualify for a conventional loan. I am located in LA and have been looking for a condo, but most of them are not FHA approved. Any help would be great. Thanks!

    Alberto

    1. Hi Alberto:

      I’m going to have someone reach out so we can look into this for you. I can tell you that one of the main qualifiers for a conventional loan is your credit score and the minimum is 620. Someone will be in contact.

      Thanks,
      Kevin Graham

  29. My husband and I would like to purchase a second home as a rental/vacation condo in FL but are wondering if we can do it with a conventional 3% down loan. His score is 720 and mine the mid 600’s. Not sure how the PMI works on a 200,000 loan. Is there a set amount for the mortgage insurance? per hundred thousand of loan? Thanks

    1. Hi Jennifer:

      You can’t get 3% down on a rental property, but I’m going to have someone reach out to you to go over your options. PMI also depends on a lot of factors. They’ll be able to take you through all this.

      Thanks,
      Kevin Graham

  30. I am in the process of being a first time buyer. Both my husband and I worked hard at bring our credit scores up to more than 580. One home we placed an offer it was accepted but the home was appraised for less then what we offered. Now we found another home which cost way more than the one we got our offer accepted. The problem are the loans. We were approved for a FHA. We were told that the FHA only goes up to 350,500. Both homes are in San Bernardino county. We were told that we will need a Conventional Loan but the credit scores must be revisited. Please tell me how high does your credit score need to be in order to get a Conventional Loan? Will we have to come out of pocket as well.

    1. Hi Margaret:

      According to the website for the Department of Housing and Urban Development, the loan limit for a single-family home in San Bernardino County is $356,500 for an FHA loan. For a conventional loan, your credit score needs to be 620. We can have someone help you look into all your options. If you can qualify with your credit, there are a variety of low down payment options available.

      Thanks,
      Kevin Graham

  31. I am looking at purchasing a home and putting almost 50% down.
    My credit is in the mid 600’s and rising.
    Is there flexibility with the debt ratio when putting 50% down?
    The home price will be $600-625,000 and I will be putting $300,000 down.
    I am recently retired.

    Thank you

    1. Hi Debbie:

      Every situation is different. I’m going to have someone reach out to you and help you look into your options.

      Thanks,
      Kevin Graham

  32. Do i need a 20% down on an. Investment property? Wanna move forward and was told i needed th 20%

    1. Hi Ruben:

      The amount necessary for the down payment depends on the type of loan you’re getting and the number of units involved. I’m going to have someone reach out to get more information on your situation.

      Thanks,
      Kevin Graham

  33. Hi I owe $130k on 15 yr mortgage. I also have a Heloc of $50k. I would like to get rid of pmi. This property is currently rented off ( not sure if it makes a difference). I have a credit score of 730. Would like to learn what my options are.

    1. Hi Pat:

      We don’t do home equity lines, but we can help you look into your options. Someone will be reaching out.

      Thanks,
      Kevin Graham

  34. I was a few weeks from closing woth a usda loan when i was told i have caivrs claim so my option was conventional loan. Yet my broker said 10 to 20% down. My score is 635 and lender said my credit report was good. So do i qualify for 3% down? My realtor is looking into otjer options like bank loans. But i am looking for options myself also.

    1. Hi Judy:

      I would be happy to have someone reach out and look into your options with you. They’ll be in contact shortly.

      Thanks,
      Kevin Graham

  35. I have little money down and a credit score of 620-660. Can I qualify for a no money down mortgage if I made 80,000 last year and around 38000 of debt which is car and student loans?

    1. Hi Charlie:

      We’d be happy to help you look into your options. Someone will be reaching out. One thing I can tell you is that the only 0% down loan we offer is through the VA.

      Thanks,
      Kevin Graham

  36. I am purchasing my future in laws home and property with an instant 20% equity. I had a preforeclosure/shorts sale in 2011 but has since improve my credit, 690-710, and have a DTI of 15-16%. can I qualify for a conventional loan or should I go forward with FHA? Since i’ll have an instant 20% equity will a PMI or MIP still be required? Thanks for the info.

    1. Hey Abs:

      Given the time frame, you should be able to go with a conventional loan. With a conventional loan and 20% equity, there would be no PMI assuming it was your primary residence. I’m going to have a Home Loan Expert reach out to help you look into your options.

      Thanks,
      Kevin Graham

  37. I’m looking to build in June 2016 just spoke with a financial advisor he said I qualify for a fha loan bin this area the cap is $316,250..what if I wanted to build a house that was $350,000..is the difference out of pocket or should I go conventional??hv someone call me need advice.

    1. Hi Jolene:

      Unfortunately, we don’t do loans on new construction. However, I can have one of our Home Loan Experts reach out to get some more information from you and see if we can answer your question on the loan limits in your area.

      Thanks,
      Kevin Graham

  38. So am I understand this correctly, that one can do a conventional loan with less than 20% down but will be required to pay PMI until you’ve paid down the principle by 20%? Example: my husband and I are looking for a home no more than 350K but we’ll only have about 30K to put down.

    1. Hi Nancy:

      In the example you just gave, you would have to pay PMI until you reach 20% equity, yes. You can avoid it with lender-paid mortgage insurance (LPMI) options like PMI Advantage. I can have a Home Loan Expert reach out to you with more information.

      Thanks,
      Kevin Graham

  39. Reach out to me i am in a fha loan i want to ser if i qualify for the conventional loan.. I thought you guys said you would reach out to customers when better options become available? I had to find out myself about this?

    1. Hi Dom:

      We can absolutely reach out to you and look into your situation to see if a conventional loan is right. We’re sorry about this and someone will be reaching out to you today.

      Thanks,
      Kevin Graham

  40. I’m confused also why do u have to pay home owners and mip on FHA homes . I really am not sure which I have.

    1. Hi Michele:

      Homeowners insurance protects your physical house and the possessions inside it. MIP is an insurance policy on the loan itself that you pay for and it protects the investor on the loan in case the borrower defaults. PMI is the same thing, but for conventional loans. Your lender would be able to tell you which one you have. Have a great holiday!

      Thanks,
      Kevin Graham

  41. You have run our application through once and denied us. We have since then paid off our outstanding bills but still have a 1st and 2nd mortgage payment and a payment to a consolidated debt company.
    Do we qualify for a FHA refinance? If so, I would like HOSS to call me back or email me.

    Thank you.

    Kathryn

    1. Hi Kathryn:

      I can have someone reach out to you to look into your options. Have a good day!

      Thanks,
      Kevin Graham

      1. HI MY NAME IS ERMA AND I AM TRYING TO BUY CONDO MY CREDIT SCORE 640LTO 700 AND ALL CONDS WANT 20% down how can you help me

        1. Hi Erma:

          We can definitely help you look into your options. Someone will be reaching out. Have a good day!

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