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Yes it is possible to get a California FHA Loan without paying for the annual Mortgage Insurance (MI). While you will still pay the Upfront Mortgage Insurance Premium of 1.75%, the annual Mortgage Insurance Premium can be completely waived in one scenario.
**This is changing starting June 3, 2013. Get the details on this blog post published on February 23, 2013.**
FHA recently issued a Mortgagee Letter that confirms that the Annual Mortgage Insurance Premium will not be charged if a loan meets these 2 criteria:
- The Loan is a 15 Year Fixed Loan
- LTV (Loan to Property Value Ratio) is at 78% or less of the property Value
See the chart below for the complete breakdown of FHA Upfront and Annual Mortgage Insurance Premiums.
You may also like to read – 6 Myths of FHA Loans: What’s True, What’s not!