Does FHA mortgage insurance make payments if I lose my job?

My brother-in-law lost his job a few months ago and he said his mortgage insurance paid his mortgage and gave him some extra money until he got a new job.
I have an FHA loan and I want to know if I can do the same thing.
If I can, who do I talk to about it?
If not, is there anything else I can do until I get a job?

p.s. I have already filed for unemployment.

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Tags: brother, extra money, fha loan, FHA Mortgage, insurance, lose, mortgage, mortgage insurance, new job, payments, unemployment

This entry was posted on Friday, December 25th, 2009 at 9:28 am and is filed under FHA Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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3 Responses to “Does FHA mortgage insurance make payments if I lose my job?”

dusty_titus says:

December 25, 2009 at 10:13 am

FHA doesn’t provide this special insurance for paying mortgage when you lose your job, or suffer an accident. This kind of Insurance must be bought in advance of any misfortune, and is always the option of any homeowner.
mccray_51 says:

December 25, 2009 at 10:40 am

No…this insurance is only for the lending institution.

Copied from Money Alert Website:

“Private Mortgage Insurance (PMI) is insurance that protects your lender against non-payment should you default on your loan. It’s vital to know that the primary and only real purpose for mortgage insurance is to protect your lender—not you.”

Your brother-in-law may have bought an outside insurance in case he lost his employment. FHA PMI does just as stated above.

Best of Luck
senna4487 says:

December 25, 2009 at 11:16 am

No- for something like this you will need supplemental insurance- like GEICO

As the other users have stated this kind of mortgage merely insures the bank. Until you have paid down your mortgage 20% Private Mortgage Insurance is part of your mortgage payment. The cost of PMI has gone through the roof the last few yrs because of the level of defaults.
Here is more on PMI
http://www.bankapedia.com/mortgage-encyclopedia/residential-mortgage-terms/300-private-mortgage-insurance

I would suggest contacting your bank and letting them know your situation. If you are able to make partial payments you may get away with having your credit unaffected.

Tags: brother, extra money, fha loan, insurance, lose, mortgage, mortgage insurance, new job, payments, unemployment,

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