Thursday, July 30, 2015

Is PMI on an USDA Rurual Development loan for the life of the Loan?


Is PMI on an USDA Rurual Development loan for the life of the Loan?
Added (1). USDA RD loans originally didn't require PMI. I believe that changed in 2012. In 2014 PMI changed from being required of lenders to automatically remove PMI after 78% equity was reach for FHA's to PMI being required for the entire life of the loan.

I am wondering if USDA RD loans were included in the 2014 change and require PMI for the whole life of the loan.
Added (2). Currently USDA RD loans require both:
1) a 2% upfront Mortgage Insurance premium ( that can be rolled into the loan)
2) a.40% annual PMI (based off remaining principal)

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