(MIP & UFMIP)
FHA charges two Mortgage Insurance fees on each loan;
- Up Front Mortgage Insurance Premium (UFMIP) typically financed in the loan.
- Annual mortgage Insurance (MIP) paid monthly.
Effective April 1, 2013
FHA Annual MIP for 30 Year loans increased to 1.35
Up Front Mortgage Insurance (UFMIP)
1.75 percent of the loan amount
for 15 and 30 Year Loans
FHA Upfront Mortgage Insurance Premiums (UFMIP)
UFMIP Fee is paid once and is typically financed by adding it to the loan amount although it may also be paid in cash by the buyer or seller.
Below are the current UFMIP premiums:
Purchase Money and Qualifying Refinances = 1.75 Percent of the loan.
For all SF Forward Streamline Refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, the UFMIP will decrease from 1 percent to 0.01 percent of the base loan amount. The endorsement date is on the Case Query screen in FHA Connection. This change is effective for case numbers assigned on or after June 11, 2012.
Monthly Mortgage Insurance Premium (MIP) Effective April 1, 2013
An annual premium, shown below, paid monthly, will also be charged based on the initial Loan to Value and length of the mortgage according to the following schedule:
30 Year Loans MIP Fee for loan amounts <=$625,500
- Loan to Value Less than 95% = 1.30%
- Loan to Value Greater than 95% =1.35%
30 Year Loans MIP Fee for loan amounts >$625,500
- Loan to Value Less than 95% = 1.50%
- Loan to Value Greater than 95% =1.55%
15 Year Loans MIP Fee for loan amounts <= $625,500
- Loan to Value Less than 90% = 0.45
- Loan to Value Greater than 90% = 0.70
15 Year Loans MIP Fee for loan amounts > $625,500
- Loan to Value Less than 90% = 0.70
- Loan to Value Greater than 90% = 0.95
Currently FHA MIP Fee may be canceled - Expires June 3, 2013
- The home must be owned for at least five years.
- ...and the loan amount must be 78% or less of the original purchase price.
FHA Upfront Mortgage Insurance (UFMIP) Fee is refundable.
A portion of UFMIP may be refundable under the following conditions:
- Refinanced within three years.
- The new loan must be a FHA refinance.