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FHA Comparison | FHA Comparison Calculator | Help Your Members Save Money | Right Balance
Help Your Members Save Money and Buy a Home Sooner …
Choose CMG MI rather than FHA
Insuring your Member’s home loan through the FHA shouldn’t be automatic. In terms of savings and efficiency, insuring it through CMG MI can make more sense. If you have a Member with a credit score of 680 or higher, with 5% or more for a down payment*, CMG MI offers real advantages over FHA.
Trying to lower your Member’s overall monthly payment?
CMG MI's Single Premium is a one-time, up-front payment that can be paid in full at closing, paid with a seller contribution (up to 6% on 95% LTVs**), financed into the loan amount, or a combination of these options.
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CMG MI |
FHA |
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| |
Credit Score |
|
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| |
700 |
680 |
|
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| Up-front Premium |
210 bps |
270 bps |
225 bps*** |
|
Monthly Premium
annualized |
0 |
0 |
50 bps |
|
Total MI Obligation
over 5 years† |
$4,200 |
$5,400 |
$9,374 |
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Based on 95% LTV, 30% coverage and $200,000 loan amount‡
CMG MI’s Advantage: Unlike with FHA, there’s no monthly premium with Single Premium, so the overall monthly mortgage payment is lower. Plus, your Member can save thousands over FHA based on the total MI obligation paid over 5 years. And at a higher credit score and lower LTVs, they’ll save even more!
Use our FHA Comparison Calculator to see the difference!
Looking to save cash at closing?
CMG MI’s EZ Monthly reduces the overall MI obligation because there’s no up-front premium, unlike FHA –which requires an up-front premium of 2.25% -- that must either be paid or financed into the loan amount.
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CMG MI |
FHA |
|
| |
Credit Score |
|
|
| |
700 |
680 |
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| Up-front Premium |
0 |
0 |
225 bps*** |
|
Monthly Premium
annualized |
63 bps |
80 bps |
50 bps |
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Based on 95% LTV, 30% coverage and $200,000 loan amount‡
CMG MI’s Advantages:
Consider two key facts:
- Interest will be paid over time on the added up-front premium on the FHA loan amount, which increases the overall loan size, and
- P&I payments are based on the total loan amount times the interest rate.
Use our FHA Comparison Calculator to see the difference!
Why Delay with the FHA?
Don’t forget that FHA means a longer process for your Member – while CMG MI can offer an immediate response on delegated loans through our e-cmgmi Origination.
Plus, CMG MI offers:
- Flexible payment plans
- Cancellable
- Home sellers typically prefer conventional loans
- More flexible appraisal guidelines regarding property repairs
- Many MI companies have increased flexibility to some degree:
- Ratios to 45%
- Second Homes (subject to Distressed Markets restrictions)
- Condominiums (subject to Distressed Markets restrictions)
CMG MI has other significant advantages over FHA. We say Yes when they say No. Read our flyer for more details.
*In distressed markets, maximum LTV is 90% with minimum credit scores of 700 or 720 (depending on the market).
**Seller concessions may be limited by lender or GSE guidelines.
***FHA premium is based on HUD Mortgagee Letter 2010-02, announcing up-front MIP increase to 2.25% on loans for which an FHA case number is received on or after 4.5.10.
†FHA and CMG MI scenarios assume up-front MI is not financed, and FHA renewal premium is applied to $200,00 amortizing balance over a 5-year period
‡25% coverage, 30-year, fixed-rate loan |