Many
homebuyers ask FHA if they can stop paying FHA mortgage insurance
premiums with their mortgages.
FHA
insures mortgages so that lenders will be encouraged to make more
mortgages available for people. The FHA mortgage insurance agreement
is between FHA and the mortgage company, so you must contact your
mortgage company and ask them what they require to drop the insurance.
Most mortgage companies will want you to have a substantial amount
of equity in your home.
For
new mortgages insured as of January 2001, HUD/FHA has clarified
the requirements for removing insurance premiums for some types
of mortgages. You may read more specific information here
and then contact your mortgage company. HUD cannot remove the insurance
premiums for you.
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