Friday, July 12, 2013

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: How to Avoid a Mortgage PMI

Louisville Ky Mortgage Lender FHA/VA KHC USDA Kentucky Mortgage: How to Avoid a Mortgage PMI: How to Avoid a Mortgage PMI Mortgages with loan-to-value (LTV) ratios over 80 percent--meaning the amount of the loan is more ...

Private Mortgage Insurance or PMI for a Kentucky KHC Mortgage Loan without PMI

On a Kentucky Fannie Mae or conventional loan, the lender usually requires the
borrower to purchase private mortgage insurance (PMI) if the amount of
the down payment is less than 20 percent of the purchase price. This
insurance protects the lender in the event of default and foreclosure.

Although the borrower is not protected, few, if any, lenders are willing to
make loans that are so close to the value of the property without PMI.
In some cases, when the loan balance gets below 80 percent (in some
cases 75 percent) of the current value, and the loan is at least two years
old, you may request early cancellation of PMI. Please contact our
current mortgage company servicing your loan  for more information.

On a loan insured by the Kentucky Federal Housing Administration (FHA),
mortgage insurance is required. FHA provides this coverage to the
lender. For FHA loans that closed after January 1, 2001, the monthly
mortgage insurance premium will automatically be canceled once it
reaches 78 percent loan-to-value ratio.28

Kentucky VA loans are guaranteed by the Veterans Administration, and Kentucky Rural 
Housing Services (RHS) loans are guaranteed by Rural Development
(formerly Farmers Home Administration).

VA loans does not have a monthly mortgage insurance premium you pay but you do pay a upfront funding fee, in where from 2% to 3.3% depending on if you have use  your VA certificate of eligibility to purchase a VA home before.

Kentucky USDA or RHS loans has an upfront fee of 2% currently that can be financed into the loan and it requires a monthly mi premium paid to USDA for life of loan of .400% annually.

This website is not part of any government agency to include USDA, KHC, VA, FHA, HUD. 
NMLS# 57916
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