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.
