FREQUENTLY ASKED QUESTIONS
Q:        How much do I have to put down on a home purchase?
A:        Minimum 3% - mortgage insurance required.  20% or more avoids MI payments.

Q:        What is difference between mortgage insurance and hazard insurance?
A:        Mortgage insurance protects the lender in case of a mortgage loan default.
A:        Hazard insurance covers fire, theft, vandalism, hail, and other optional coverages.
A:        Hazard insurance is also known as HOI (Homeowners Insurance).

Q:        What is Mortgage Insurance Premium (MIP)?
A:        It is a premium required for all FHA loans. Premium is 1.75% of loan amount.
A:        This 1.75% can be financed into your loan. Does not count toward FHA loan limits.

Q:        What is LTV?
A:        Loan-to-Value ratios (loan amount to value of your home).

Q:       Do mortgage insurance payments last for the life of mortgage loans?
A:        Once mortgage balance falls below 80% of home's value, payments can be removed.
A:        FHA requires annual MIP for 11 years for LTVs below 90%; if over 90%, life of  loan.
A:        Refinance FHA to conventional loan to remove MIP (78% or less LTV).

Q:        Do Veterans Administration Loans require mortgage insurance?
A:        No - but a 2% of loan funding fee may apply if Veteran is not disabled serviceman.      
        
Q:        What happens in a real estate sales transaction?
A:         See Video Below