FHA Requirements
Mortgage Insurance (MIP) for FHA Insured Loan
Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.
2018 MIP Rates for FHA Loans Over 15 Years
If you take out a typical 30-year mortgage or anything greater than 15 years, your annual mortgage insurance premium will be as follows:
| Base Loan Amount | LTV | Annual MIP |
|---|---|---|
| ≤ $625,500 | ≤ 95% | 80 bps (0.80%) |
| ≤ $625,500 | > 95% | 85 bps (0.85%) |
| >$625,500 | ≤ 95% | 100 bps (1.00%) |
| > $625,500 | > 95% | 105 bps (1.05%) |
2018 MIP Rates for FHA Loans Up to 15 Years
Homebuyers who can afford to pay off their loans quicker and opt for a shorter term, such as a 15-year mortgage, will benefit from lower mortgage insurance premiums, as follows:
| Base Loan Amount | LTV | Annual MIP |
|---|---|---|
| ≤ $625,500 | ≤ 90% | 45 bps (0.45%) |
| ≤ $625,500 | > 90% | 70 bps (0.70%) |
| > $625,500 | ≤ 78% | 45 bps (0.45%) |
| > $625,500 | 78.01% to 90% | 70 bps (0.70%) |
| > $625,500 | > 90% | 95 bps (0.95%) |
How Long Will You Pay the MIP?
For loans with FHA case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP, which is the time at which you will pay for FHA Mortgage Insurance Premiums on your FHA loan. They are as follows:
| Term | LTV% | Previous | New |
|---|---|---|---|
| ≤ 15 years | ≤ 78% | no annual MIP | 11 years |
| ≤ 15 years | 78.01% to 90% | cancelled at 78% LTV | 11 years |
| ≤ 15 years | > 90% | loan term | loan term |
| > 15 years | ≤ 78% | 5 years | 11 years |
| > 15 years | 78.01% to 90% | cancelled at 78% LTV and 5 years | 11 years |
| > 15 years | > 90% | cancelled at 78% LTV and 5 years | loan term |
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.
*Revision to the Annual MIP Premium – as per Mortgagee Letter 2015-01
There will be no change in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following:
- On loans with a Loan to Value of less than or equal to 78% and with terms up to 15 years. The annual MIP for these loans will remain at 45 basis points.
- On terms ≤ 15 years and loan amounts ≤ $625,500 - If the loan to value is ≤ 90%, the Annual Premium remains the same at 45 basis points (bps). If the loan to value is >90%, the Annual Premium remains the same at 70 basis points (bps).
- On terms ≤ 15 years and loan amounts >$625,500 - If the loan to value is 78.01% - 90.00%, the Annual Premium remains the same at 70 basis points (bps). If the loan to value is >90%, the Annual Premium remains the same at 95 basis points (bps).
There will be the following reduction in premiums in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following:
- On terms > 15 years and loan amounts ≤ $625,500 - If the loan to value is ≤ 95%, the new Annual Premium is reduced from 130 basis points (bps) to 80 basis points (bps). If the loan to value is >95%, the new Annual Premium is reduced from 135 basis points (bps) to 85 basis points (bps).
- On terms > 15 years and loan amounts >$625,500 - If the loan to value is ≤ 95%, the new Annual Premium is reduced from 150 basis points (bps) to 100 basis points (bps). If the loan to value is >95%, the new Annual Premium is reduced from 155 basis points (bps) to 105 basis points (bps).
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FHA Loan Articles and Mortgage News
March 10, 2019 - There is a kind of golden rule for home loan borrowers; never come to the application process with less than 12 months of on-time payments on all financial obligations. How can thinking like a loan officer help you in this respect?
March 8, 2019 - There are a variety of factors that can influence whether a lender will approve your mortgage loan if you have a lower FICO score. Think about the non-FICO score aspects of your new home loan for a moment-the loan-to-value ratio, the amount of your down payment, and your debt-to-income ratio.
March 6, 2019 - Your credit history and credit scores will play an important part in the rate you get offered. You and the lender are required to negotiate the rate-the FHA does not set or regulate mortgage loan interest rates, even on FHA mortgages. What can a borrower do to try for a more competitive interest rate?
March 5, 2019 - The interest rate any borrower is offered on a mortgage loan is based in part on credit scores and other financial qualifications. The best thing you can do initially to get a lower mortgage loan interest rate to buy real estate with is to start early on your credit.
February 28, 2019 - First-time home buyers do not need to worry that they earn too much money to qualify for an FHA mortgage. It is true that other government-backed mortgages may have an income or need requirement-the USDA mortgage loan program is a great example of one that does.
FHA.com Reviews
FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!
