PMI vs. FHA Mortgage Insurance
FHA, which stands for Federal Housing Administration (HUD Office of Housing), has a mortgage insurance program that helps moderate to low income families get the financing they need to buy a home. Moderate to low income families are then able to get a mortgage loan from a HUD approved lender with the insurance FHA provides.
If you’re not familiar with PMI, here’s a brief introduction, then you’ll wonder the difference is. First off, the rules regarding automatic cancellation of the insurance provided by The Homeowner’s Protection Act of 1998 do not apply. Secondly, there are the obvious income requirements since FHA insurance is designed for moderate to low income individuals and families. Lastly, there are restrictions as to what kind of mortgage you can get, essentially investors need not apply.
This entry was posted on Wednesday, April 12th, 2006 at 7:34 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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