My FHA loan requires me to pay the monthly mortgage insurance premium (MIP) for a minimum of five years despite the fact that I am below the 78 percent ltv threshold needed to cancel the premium.
. Sense The FHA program makes sense when you have little equity to work with or a unique financial situation. You’ll need at least a 3.5% down payment to purchase a home using an FHA Loan. The.
Home Equity Loans for FHA Borrowers With Bad Credit. There are many options for cashing out equity if you have an existing FHA loan. These include cash-out refinancing, home improvement financing, home equity loans and home equity lines of credit. If you’re looking for the closest thing you can get to a "true FHA home equity loan," an FHA cash-out refinance may be your best bet, as these allow you to take out your new loan under FHA backing.