I just had a few questions about FHA loans. Do lenders require PMI with FHA loans? What benefit do FHA loans provide in comparison to other companies?
Yes, lenders do require a private mortgage insurance (PMI) to ensure that the total amount of the mortgage will be paid to the lender if the buyer defaults. Usually the PMI will not be put into effect until 20% of the mortgage has been paid. Find out more about the benefits of FHA loans compared to the benefits provided by other companies.