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Insurance
PMI vs. FHA MIP
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Insurance
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Although the insurance protection concept is similar, there are
differences between private mortgage insurance and FHA. FHA
insurance is a government-administered mortgage insurance program
that does have certain restrictions. FHA has maximum regional loan
limits that are lower than those with private mortgage insurance.
FHA may be more expensive, takes longer to receive approval, and has
fewer payment plan options. FHA insurance lasts for the life of the
loan, unlike private mortgage insurance which is cancelable in most
circumstances. FHA is a good choice for some borrowers with credit
history problems that might need special assistance.
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