Mortgage Insurance for FHA Insured Loans

Updated 9/16/16 

Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance for all borrowers.

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

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

Streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 basis points, 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:

1. 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.
2. 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).
3. 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:

1. 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).
2. 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).

Term > 15 Years

Base Loan Amount

LTV

Effective

Annual MIP

< = $625,500

< = 95.00%

26-Jan-15

80 bps

< = $625,500

>95.00%

26-Jan-15

85 bps

Above $625,500

< = 95.00%

26-Jan-15

100 bps

Above $625,500

>95.00%

26-Jan-15

105 bps

Term < = 15 Years With LTV Above 78%

Base Loan Amount

LTV

Effective

No Changes to 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

*No 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, which is the time on which you will pay for FHA Mortgage Insurance Premiums on your FHA loan. They are as follows:

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

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Why Does My Online Credit Score Differ From My Mortgage Lender Credit Score?

Lenders use different credit scoring models to gauge your risk as a borrower. Each lender chooses the one that best suits its needs, and some use scores that are weighted according to their industry. For example, a mortgage lender might use a different scoring model than an auto lender. Other lenders use a blend of the scores that are assigned to you by the three credit reporting agencies (CRAs)...

A credit score calculates your risk level for a lender based on your past performance managing debt. What many consumers do not realize is that they have more than one credit score. Numerous formulas exist for calculating credit scores, and each bureau does so a different way. Because no two formulas are the same, your credit scores will differ depending on the type of credit score you pull. In addition, you have a separate credit score with each of the three credit bureaus. If you pull a different type of credit score than your lender pulls, your numbers and your lender's numbers won't be the same.

The majority of mortgage lenders utilize FICO scoring. FICO scores are based on a proprietary formula owned by the Fair Isaac Corp. When a lender requests your FICO scores, it receives a tthree bureau report that contains your FICO score from each credit bureau. Unfortunately, consumers don't have access to all three of their FICO scores. You can purchase your TransUnion and Equifax FICO scores directly through the Fair Isaac Corp.'s website, myfico.com. You cannot, however, purchase your Experian FICO score. Experian releases FICO scores to lenders, but not to consumers.

Most individuals who decide to pull their credit scores online visit what they believe is the most reliable source for the information – the credit bureaus. The credit bureaus, however, sell you their own proprietary score known as a “Vantage Score.”  FICO scores ranges from 300 to 850, Vantage Scores ranges from 501 to 990. Due to its higher range, your Vantage Score will always be higher than your true FICO score. This can lead to disappointment when you visit a lender armed with what you believe is an excellent credit score only to be told that you aren't as qualified as you thought you were. The only way to ensure that the scores you are purchasing are legitimate FICO scores is to buy them directly from the Fair Isaac Corp.

Your FICO score is calculated using the information that appears on your credit report with each credit bureau. You don't have to pay to review the information for accuracy. The Fair Credit Reporting Act gives you the right to pull a free credit report from each credit bureau once each year at  www.annualcreditreport.com. It does not, however, give you the right to free FICO scores each year. Advertisements for free credit scores generally require you to sign up for an annual service or don't offer you your actual FICO scores. The bad news is that if you want real FICO scores, you'll have to pay for them. The good news, however, is that with your real FICO scores in hand, you can rest assured that your scores will match your lender's.

Need more information? Need to check your credit report?

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