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California FHA Loans

FHA Loan Information for California                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHA News

FHA loans benefit homebuyers by providing low down payment options and credit criteria more flexible than conventional loans. (FHA loans)

 

FHA Streamline Refinance

FHA streamline refinance loans make it easier for homeowners with current high rate FHA loans to refinance their mortgage.  Streamline refinance loans do not require appraisals (streamline refinance Loans)

 

Down Payment Assistance

CHDAP- California Homebuyer's Down payment Assistance Program Offers a deferred-payment subordinate loan in the amount of (3%) of the purchase price or appraised value, which ever is less to be used for down payment and/or closing costs

(down payment assistance)

 


 

 

 

PMI Calculator

 

What is Private Mortgage Insurance?

 

 

What is the difference between Private Mortgage Insurance (PMI) and FHA loan Insurance?

 

 

How is Private Mortgage Insurance- PMI added?

 

 

How much is my Mortgage Insurance?

 

 

Who Can I speak to About Dropping my Mortgage Insurance?

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Private Mortgage Insurance


Private mortgage insurance is a type of insurance that helps protect the mortgage company (the insurance does not protect the borrower!) against losses due to foreclosure. This protection is provided by private mortgage insurance companies and allows mortgage companies to accept lower down payments than would normally be allowed.

Private mortgage insurance also enables mortgage companies to grant loans that would otherwise be considered too risky to be purchased by third party investors like the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). The ability to sell loans to these investors is critical to maintaining mortgage market liquidity, which in turn, allows mortgage companies to continue originating new loans.

 

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PMI vs FHA MIP


Although the insurance protection concept is similar, there are differences between private mortgage insurance and FHA mortgage insurance. FHA insurance is a government-administered mortgage insurance program that does have certain restrictions. FHA has maximum regional loan limits that are lower than those with private mortgage insurance. FHA may be more expensive, take longer to receive approval, and have fewer payment plan options. FHA insurance lasts for the life of the loan, unlike private mortgage insurance which is cancelable in most circumstances. FHA is a good choice for some borrowers with credit history problems that might need special assistance.

 

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Calculating the PMI


When you purchased your house your lender most likely added mortgage insurance, also called Private Mortgage Insurance (PMI), to your monthly payment unless you made at least a 20% down payment. This payment is based on the original mortgage amount and is paid as part of your monthly mortgage payment until you show that your house has increased in value, including additions and improvements to the point that your loan is 80% of your current house value.

 

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Cost of PMI
The only way to find out is to call your lender's customer service representative. However, typically the cost is $0.38-$0.78 per $100 of your loan amount. See following examples:

Orig. Loan Amount

5%

10%

15%

$100,000

$65.00

$43.33

$31.67

$150,000

$97.50

$65.00

$47.51

$200,000

$130.00

$86.66

$63.34

 

 

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