Long Beach, CA (PRWEB) May 11, 2014
“The biggest point of contention is that the mortgage insurance premiums required with FHA financing increase costs beyond the reach of many borrowers,” says Scott Schang, Branch Manager of Broadview Mortgage Long Beach.
FHA financing requires that the borrower pay an upfront mortgage insurance premium (UFMIP) as well as an annual mortgage insurance premium.
In addition to the upfront mortgage insurance premium, borrowers are also required to pay an annual mortgage insurance premium, which is actually paid monthly, as a part of your mortgage payment, adds Schang.
There are common advantages to FHA financing compared to Conventional financing. This will be based upon the financial situation and qualifications of the homeowner or homebuyer.