FHA End Loan

by Home Buyer

Ask Kate: Who Needs an FHA End Loan? We are looking to apply for an FHA end loan. Home cost is $225k, we have $80k but do not want to deplete our savings since we are 57 years old. We also do not want to pay PMI insurance.


How much down payment will we have to pay to avoid PMI? And is that what we should be doing?

Answers by Kate: FHA End Loan and Mortgage Insurance

Dear Home Buyer, Sounds like a new home is in your near future. Congratulations!

An end loan to pay off interim construction financing can be FHA or conventional. In your case, you are considering an FHA mortgage loan.

You should be aware that even if your down payment is 20 percent or more you will still be required to pay an FHA mortgage insurance premium (MIP). If you were to choose a conventional loan, mortgage insurance is charged according to the percentage of your down payment. After putting down 20 percent though, lenders are no longer allowed to charge MI, at least at this time.

Perhaps there is another reason you are leaning toward FHA. Is it to overcome a certain obstacle? If so, I would suggest you weigh the amount of your down payment vs your monthly house payments since paying FHA mortgage insurance is inevitable whether you put down 4 or 40 percent.

I have also provided links to uncommon information about FHA mortgage loans at the bottom of this page for your convenience. Take a moment to bookmark FHA End Loan to your favorites and return often for more real estate and financing tips.

Did you know you can also invite friends to comment on this page or ask another question of their own like you did.

Visit FHA and VA Questions and Answers at Ask Kate for solutions based on inquiries from other Contributors to my website just like you.

Best Wishes,




Return from FHA End Loan to Get Your Best Mortgage Rate

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You can also ask Kate about your mortgage at Ask Kate About Buying a House.

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