I've been a homeowner for a few years now, and noticed somewhere online recently that RHS loans are backed by the government, therefore no PMI (private mortgage insurance) is necessary.

I've been paying PMI since I didn't have the 20% down payment available at the time I acquired the loan, and my HUD-1 states that I do in fact have an RHS loan. Am I unnecessarily paying for PMI? Or will I have to pay PMI until I hit the 20% mark in principal? This recent article I read made me second guess the latter.

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37106 posts

Posted on 7/7/14 at 3:17 pm to Baers Foot

RHS loans have no down payment requirement and no PMI. You should know if you have a RHS loan, as there are qualification limits on both location and income.

Check your mortgage docs. It's possible the HUD-1 checked the wrong box. If it's really a RHS loan... uhm... I'd be calling the original lendor with the quickness.

This post was edited on 7/7/14 at 3:18 pm

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Posted by Baers Foot

Louisiana Ragin' Cajuns

Member since Dec 2011

3543 posts

Posted on 7/7/14 at 3:26 pm to LSUFanHouston

Thanks for the info, so if my mortgage was bought out by another lender - I should still contact the first lender about the PMI?

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37106 posts

Posted on 7/7/14 at 3:54 pm to Baers Foot

Did you use a bank originally or a broker? If you used a broker, I'd call the broker. If you used a bank... I'd call them. They might tell you that you need to call the current servicer, though.

Prepare yoursaelf for a lot of blame-shifting. =)

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Posted by Bear Is Dead

Monroe

Member since Nov 2007

4696 posts

Posted on 7/7/14 at 3:58 pm to Baers Foot

You dont have PMI, but you do have a USDA annual fee. Are you confusing PMI with that perhaps?