Question by ryan: does fha mortgage insurance cover your mortgage if you cant make a payment?
i just lost my job and i was wondering if fha mortgage insurance would pay my mortgage for a period of time like the Rainy day fund does for private lenders who are enrolled in the program
Best answer:
Answer by jlf
No. It insures the lender against the borrower defaulting on the loan. It does nothing to benefit the borrower.
Know better? Leave your own answer in the comments!
No.
PMI covers the bank, AFTER your house is foreclosed on, and sold to someone else.
You need to set up your OWN rainy day fund – called a savings account.
No, Ryan, not at all.
FHA mortgage insurance is for the lender. Should you default on your mortgage, FHA will cover the lender for the default. But it’s not for just a payment or two. The insurance is for the entire mortgage balance.
If you want “mortgage protection” insurance, the borrower must buy that on their own.
Good luck.