PMI was insurance coverage that protects the lender-perhaps not you-if you prevent and come up with payments

Mortgage loans regarding the Government Homes Management (FHA) is actually designed for first-go out home buyers whom is generally with a difficult time providing a traditional mortgage. This really is theoretically perhaps not a zero-money-down loan, given that lowest down payment to own a keen FHA financing are step three.5%. But that’s however pretty great, right?

Well, FHA loans is at the mercy of a myriad of most fees and conditions, too-eg an up-front mortgage insurance costs (MIP) of just one.75% of your overall mortgage, and a yearly MIP fee out-of from 0.forty five to a single.05% of your own latest financing equilibrium. step 3

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