Pmi

What is the name of your state? Virginia

I have an 30 year FHA loan with PMI. I am in the 14th year of the loan and my loan balance has dropped below the 80% mortgage balance threshold for being able to remove the PMI. The mortgage company claims that they do not have to remove PMI from FHA loans. is this a true statement?

[HomeGuru]

Originally posted by dcarole
What is the name of your state? Virginia

I have an 30 year FHA loan with PMI. I am in the 14th year of the loan and my loan balance has dropped below the 80% mortgage balance threshold for being able to remove the PMI. The mortgage company claims that they do not have to remove PMI from FHA loans. is this a true statement?

**A: and when you contacted the FHA office at HUD, what did they tell you?

I have not done so, but i will.

thank you for your advice!

[HomeGuru]

Post back when they give the the answer.

[HUD-1]

For an FHA loan originated in 1990, there is no provision for removing the monthly MIP based on an 80% LTV. This type of provision was not in effect for FHA loans until the year 2001. The only way to get rid of the MIP for this loan is to refinance into a conventional loan. Don't forget, the MIP is based on the outstanding principal balance (.5% per year), and declines as the principal is paid down.