The borrower must also have a social security number. If the appraisal is at a value lower than requested, a reconsideration of value may be requested by sending FHA recent comparable indicating a higher value, or the buyer may pay the additional difference. The co-signers income, assets, liabilities, and credit history are included in the determination of creditworthiness. The insurance is collected by the lender and paid to FHA who in turn reimburses lenders in the event of a loan default. MMI and MIP are the two different types of FHA mortgage insurance.
Insurance is paid on the remaining balance of the loan only.
Therefore the payment will decrease gradually over the life of the loan. If any other costs, other than those FHA non-allowable costs, are paid by the seller on behalf of the buyer, FHA requires that the buyer's loan be reduced by a corresponding amount, saving the buyer very little money, because their down payment is increased. Copyright 1999 GoCheapMortgage.