If FHA mortgages are insured by the government why do some lenders still require / charge you for PMI?
mortgages
From what I have read, FHA mortgage loans are backed by / insured by the government, so how are lenders also allowed to require / charge you for PMI (Private Mortgage Insurance) on FHA loans?
Tags: charge, Government, insured, Lenders, mortgage insurance, Mortgages, PMI
because the pmi isnt on that loan its on the part of the loan that couldnt be financed under those terms right? at least i know thats how it was going to be for us until we realized we could still use the va loan even though we already owned another house….thank god because the pmi was all a rip off to me…
because is is not 100% Guaranteed by FHA only 80% and the Gov wants to make there money back.