Our Favorite Wholesale Lender has the Lowest PMI Rates in the Country
Here is a Video comparing Borrower paid PMI vs Lender paid PMI
Here is a Video comparing Conventional and FHA PMI
Typically FHA loans have lower interest rates than Conventional Fannie Mae Loans but the PMI is higher. Not only the monthly PMI but 1.75% of the loan amount is financed PMI on top of the loan.
We always want to try to place you with conventional financing if we can. Eventhough the interest rate is higher , the PMI is much lower and it can be removed when the balance of the loan gets to be 80% of the price of the house. If you have PMI with an FHA loan, the only way it can be removed is by refinancing into a new loan.
One thing that helps us determine which way to go is the customers credit score. usually higher scores point us towards conventional financing.