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How does private mortgage insurance differ from insurance programs offered by the FHA (Federal Housing Administration) government agencies?

April 26, 2017Administration differ Federal FHA government HOUSING Insurance offered private mortgage insurance Programs

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How does private mortgage insurance differ from insurance programs offered by the FHA (Federal Housing Administration) government agencies?

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Although the insurance protection concept is similar, there are advantages to using private mortgage insurance. • Private mortgage insurers have much higher loan limits than FHA or VA. • Private mortgage insurance is generally cheaper. • Borrowers can expect faster loan approval, less paperwork, and more variety in premium plans when their lenders choose to buy private mortgage insurance. • Private mortgage insurance is cancelable if charged to the borrower, meaning you will probably pay less for a low down payment loan insured by the FHA or VA.