I have been thinking to buy a house but I always thought that I would go for a conventional loan and put 20% down since my credit score is good and also I do not want to pay PMI for life.
Now, a couple of my friends bought theirs houses by putting only 3-4% down and went for FHA. When I asked them how do they feel about PMI, their response was that they only have to pay PMI for couple of months. This is very very confusing because I always thought that PMI is for life. If anyone could remove PMI penalty payments in matter of months then why wouldn't everyone go for buying a house?
So my question is:
- Is it possible to have to pay PMI for only couple of months?
- If so, how can I do that?
- Also,if that is the case what is the reason for anyone to not prefer FHA over conventional?