Do I have to pay mortgage insurance on an FHA loan?
Private mortgage insurance (PMI) is a type of insurance borrowers typically pay on a loan when they have less than a 20% down payment. You are no longer responsible for paying for PMI once you have 20% equity in the home.
If you get an FHA mortgage, you won't pay for traditional PMI. However, you will need to pay for government-issued mortgage insurance.
Can I use it for multi-family properties?
Yes, you can use an FHA loan to buy a multi-family property, provided that the property has no more than four units and you will live in one of them as your primary residence.
Why haven't I heard of FHA loans before?
In order for a bank or other lender to offer FHA loans, they must be approved to do so by the federal government. If you've approached a lender in the past and they did not mention this loan to you, don't assume it's because you wouldn't qualify. It may simply be that particular bank wasn't approved to make this type of loan. Instead, reach out to a bank that's approved to issue FHA loans if you're interested in this type of loan.
If you're ready to start shopping for your new home with the help of a FHA loan, get in touch with a Synovus mortgage specialist today. We're here to help you get the financing you need to purchase your next home.