What is the maximum deductible amount allowed by FHA for a hazard insurance policy?

 

FHA does not require a borrower to have hazard insurance. Therefore, FHA does not have a maximum deductible for a hazard insurance policy. If the lender requires the borrower to have hazard insurance, the amount of the deductible will be established by the lender. If the lender requires the borrower to have hazard insurance, then the lender must escrow for the payment of the hazard insurance premium. 1% of the loam amount is the standard deductable. However, most lenders will not object to a 2% deductible, but the borrower must show an acceptable level of personal assets.

 

 

Happy Selling!
Jerry Alexander
Underwriter
Gateway Mortgage Group
1255
W. 15th Street| Ste. 540| Plano, TX 75075
972-908-3390 ext. 132

jerry.alexander@gmos.us
3/01/2010
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