Is FHA insurance the same with Private Mortgage Insurance?

Say you''re planning to buy a home foreclosures and getting it financed through FHA, then you will have (MIP) mortgage insurance premium. All FHA mortgages must have MIP, regardless of the loan-to-value ration. On the other hand, a PMI (private mortgage insurance) is added into your mortgage payment for conventional loans when the homeowner has less than 20 percent equity. This is the same if you're buying a home foreclosures with conventional financing and you're downpayment is less than 20 percent of the purchase price.

In short, FHA's MIP is not the same with PMI.
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Written by Resty Malia
Buying a Home Foreclosures