Loans FHA Upfront Mortgage Insurance Premium?

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I’m buying a house through FHA loans. In all cases, the mortgage insurance premium required if I withdraw 20% of the cost? And if so, instead of the insurance premium in the amount of my loan, can I pay cash?

  1. Reply
    February 4, 2011 at 4:50 pm

    If you are putting 20% down, mortgage insurance is not required, although it depends on the state.

    If you were required to pay for insurance, cash is the WORST way to pay. There have been cases of people paying for insurance, thinking they were covered, when it turned out that an employee kept the cash and no record existed of payment. Paying by check (or electronically) is much better, since it leaves a trail.

  2. Reply
    February 4, 2011 at 4:58 pm

    Why are you going FHA if you are putting 20% down? And yes, you do not have to finace the MI, it is just a option.


  3. Reply
    Expert Realtor
    February 4, 2011 at 5:25 pm

    If you have 20% to put down, then my question is WHY are you doing an FHA loan?

    Do you realize that you can get a better rate with another loan program?

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