Approved for home loan{FHA}

lbrown59 · Feb 16, 2003

Re: Re: Approved for home loan{FHA}

20 percent down payment.
bukethead
================
20% of what?
The END ************************* LB 59

Originally posted by bukethead
On July 29, 1999, the new Homeowner's Protection Act of 1998, also known as the PMI Act, regarding the cancellation of PMI takes effect. Private Mortgage Insurance (PMI) is required by lenders when a loan is originated and closed without a 20 percent down payment. This insurance protects the lender from default losses in the event a loan becomes delinquent. The PMI Act will enable homeowners with new loans originated after July 29, 1999 and who meet specified requirements to have their PMI canceled. If your loan was issued before July 29, 1999, CONTACT YOUR MORTGAGE LENDER FOR FURTHER INFORMATION ON CANCELLATION OF PMI.

The law provides 2 situations in which borrower paid PMI may be cancel - it can be automatic or by request. Lender-paid PMI is excluded from these mandates, but requires an up front disclosure to the borrower about lender-paid PMI.

The 2 cancellation situations are:

Automatic. In general, when the homeowner's equity position reaches 22 percent of the original value of the property, the mortgage servicer must automatically cancel the PMI. The borrower must be current in making payments for automatic cancellation to apply.

Different requirements exist for "high risk mortgage loans, as defined by government-sponsored entities (i.e. Fannie Mae and Freddie Mac). CONTACT YOUR MORTGAGE LENDER IF YOU FIT THIS CATEGORY.

By Request. Homeowners can request cancellation of the PMI when their equity position reaches 20 percent of the original value of the property, if they meet certain criteria. CONTACT YOUR MORTGAGE LENDER FOR ITS CRITERIA LIST.

Info obtained from http://www.hud.gov/offices/hsg/sfh/res/respapmi.cfm

Articles on PMI
http://www.hud.gov/assist/siteindex.cfm Just do a search for PMI
Hope this helps
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lbrown59 · Feb 16, 2003

Re: Re: Re: Approved for home loan{FHA}

and this is true equity based on purchase
price.marci
======================
True equity has nothing to do with purchase price.
Take it from a 30 year housing vet.Owner of-BUDGET HOMES CO. 30 Years.

The END ************************* LB 59

Originally posted by marci
Exactly.
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