FHA requirements include mortgage insurance for FHA loans to protect lenders against losses that result from defaults on home mortgages.

FHA Loan Rates

October 24, 2014
FHA Rates for October 24, 2014
30 Year Fixed
3.25% Rate
3.29% APR
15 Year Fixed
2.75% Rate
3.0% APR
FHA.com is a private company, is not a government agency, and does not make loans.

Prequalify Now!

Compare mortgage rates for your refinance or home purchase loan.

CHOOSE A LOAN TYPE

then
get
your

FREE CREDIT SCORE

Do you know what's on
your credit report?
FHA.com is a private company, is not a government agency, and does not make loans.

FHA Requirements

Mortgage Insurance for FHA Insured Loan

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent.

Current Up-Front Mortgage Insurance Premium

The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.

Current Up-Front MIP on Certain Streamline FHA Refinances

SF forward streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the UFMIP is currently 0.01 percent of the base loan amount.

Current Annual MIP on Certain Streamline FHA Refinances

SF forward streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps, regardless of the base loan amount and takes effect on or after June 11th, 2012.

Most Recent Changes to FHA Mortgage Annual Mortgage Insurance

*Revision to the time period for Assessing Annual MIP
For loans with FHA case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP as per the chart below:

Term
LTV %
Previous
New
< = 15 yrs
< = 78
No Annual MIP
11 years
< = 15 yrs
> 78 - 90.00
Cancelled at 78% LTV
11 years
< = 15 yrs
> 90.00
Cancelled at 78% LTV
Loan Term
> 15 yrs
< = 78
5 years
11 years
> 15 yrs
>= 78 - 90.00
Cancelled at 78% LTV & 5 yrs
11 years
> 15 yrs
> 90.00
Cancelled at 78% LTV & 5 yrs
Loan Term

*Revision to the Annual MIP Premium

Increase in Annual Mortgage Insurance Premiums will be effective for all case numbers dated on or after June 3, 2013 for loans with an Loan to Value of less than or equal to 78% and with terms up to 15 years. The new annual MIP for these loans will go from 0 basis points to 45 basis points.

The following has already been in effect for all case numbers dated on or after April 1st, 2013.

On terms > 15 years and loan amounts < = $625,500 - If the loan to value is < = 95%, the new Annual Premium is 130 basis points (bps). If the loan to value is >95%, the new Annual Premium is 135 basis points (bps).

On terms < = 15 years and loan amounts < = $625,500 - If the loan to value is < = 90%, the new Annual Premium is 45 basis points (bps). If the loan to value is >90%, the new Annual Premium is 70 basis points (bps).

Note: SF forward mortgages with amortization terms of 15 years or less, and a loan to value ratio of 78% or less, remain exempt from the Annual MIP (Mortgagee Letter 2011-35).

Increase to FHA Annual Mortgage Insurance Premium for loans over $625,000
FHA is also exercising its authority to add an additional 5 basis points to mortgages with base loan amounts exceeding $625,000.

On terms > 15 years and loan amounts >$625,500 - If the loan to value is < = 95%, the new Annual Premium is 150 basis points (bps). If the loan to value is >95%, the new Annual Premium is 155 basis points (bps).

On terms < = 15 years and loan amounts >$625,500 - If the loan to value is 78.01% - 90.00%, the new Annual Premium is 70 basis points (bps). If the loan to value is >90%, the new Annual Premium is 95 basis points (bps).

Term > 15 Years
Base Loan Amount
LTV
Effective
Annual MIP
< = $625,500
< = 95.00%
1-April-13
130 bps
< = $625,500
>95.00%
1-April-13
135 bps
Above $625,500
< = 95.00%
1-April-13
150 bps
Above $625,500
>95.00%
1-April-13
155 bps
Term < = 15 Years With LTV Above 78%
Base Loan Amount
LTV
Effective
Annual MIP
Any Loan Amount
< =78.00%
3-June-13
45 bps
< = $625,500
< =90.00%
1-April-13
45 bps
< = $625,500
>90.00%
1-April-13
70 bps
Above $625,500
< = 90.00%
1-April-13
70 bps
Above $625,500
>90.00%
1-April-13
95 bps

FHA Loan Articles

Read About Mortgage News, FHA Updates, and Guidelines
FHA Loan Rules on Student Loan Debt

The borrower who has a parent paying student loan debt every month may be able to show the cash income from that payment is stable and reliable. Debt listed in their own name can and probably will be included in debt-to-income ratio calculations.

FHA FICO Score Facts

The FHA Bad Credit Loan myth is a common one, but the truth of the matter is that FHA loan rules, as printed in HUD 4155.1, do list minimum credit scores.

Tax Documents and FHA Home Loan Applications

When applying for an FHA home loan, some lenders may ask for tax paperwork as part of the application process. Some borrowers may wonder if this is legal, or an acceptable practice for home loans in general.

Are FHA Loan Standards More Lenient Now?

FHA loan applicants should compare rates and terms with competing lenders to try to get the most favorable terms on the loan or refinance loan. Down payment rules for FHA loans require a minimum 3.5% down compared to up to 20% for conventional loans.

A Common FHA Loan Closing Costs Question

There are many typical questions about FHA loan closing costs. For example, some wonder if the closing costs can be viewed as part of the required FHA loan down payment. (That is not possible, the closing costs and down payment are two separate things.)

fha.com has a Shopper Approved rating of 4.5/5 based on 44 ratings and reviews