Mortgage/renting/new home questions

[sniper7]

PMI now stays on forever with FHA loans.

Any idea when that changed? We did a refi about 2 years ago, ill need to check the exact date

[Dave_L]

http://themortgagereports.com/12740/...ve-june-3-2013

Looks like it changed June 3, 2013 but I didn't think it was that long ago.

Here's what's changing.
Currently, the Federal Housing Administration requires homeowners to pay annual MIP so long as their loan-to-value is greater than 78%, where "value" is equal to the last known value of the home.
In addition, if the original mortgage term is greater than 15 years, at least 60 payments must have been made on the mortgage before FHA MIP can be automatically cancelled.
Beginning in June, though, the FHA moves away from an LTV-based system. The new cancellation policy will be as follows :

• Loans beginning at 90% LTV or less will pay annual MIP for 11 years.
• Loans beginning at 90% LTV or more will pay annual MIP for the complete loan term.

This means that home buyers using the Federal Housing Administration's 3.5 percent downpayment program will pay annual mortgage insurance for the loan's full 30 years, regardless of whether the home appreciates to the point of having 22 percent equity or more.
With the new FHA rules, MIP is forever.

[sniper7]

Wow, I believe that would apply then, I'll have to dig into it. I sent my refi guy an email already so hopefully he knows for sure.

[hobowh]

there is a way to get a second FHA, but the 2 homes have to be more than 50 miles apart, and other rules that have to be met, so prob not a feasible option.

[Irving]

If the house is in your name only, then just but the next house in your wife's name and you can do FHA again.

[sniper7]

Unfortunately both of those won't apply, that would have been awesome though!