Although the insurance protection concept is similar, there are differences
between private mortgage insurance and FHA mortgage insurance. FHA insurance
is a government-administered mortgage insurance program that does have certain
restrictions. FHA has maximum regional loan limits that are lower than those
with private mortgage insurance. FHA may be more expensive, take longer
to receive approval, and have fewer payment plan options. FHA insurance
lasts for the life of the loan, unlike private mortgage insurance which
is cancelable in most circumstances. FHA is a good choice for some borrowers
with credit history problems that might need special assistance.
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