{"id":117,"date":"2021-08-02T10:12:26","date_gmt":"2021-08-02T10:12:26","guid":{"rendered":"https:\/\/xlnc.info\/instamortgage\/?page_id=117"},"modified":"2024-04-05T11:26:33","modified_gmt":"2024-04-05T11:26:33","slug":"fhaloans","status":"publish","type":"page","link":"https:\/\/xlnc.info\/instamortgage\/fhaloans\/","title":{"rendered":"ABCs of FHA Loans"},"content":{"rendered":"<div class=\"container\">\n<div class=\"text-center\"><img decoding=\"async\" class=\"img-fluid\" src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/uploads\/2023\/07\/Brown-Modern-Real-Estate-Banner-scaled.webp\" \/><\/div>\n<\/div>\n<h1 class=\"sr-only\">FHA Loans<\/h1>\n<div class=\"abcfhaloans-page guides-detailed-page\">\n<div class=\"container\">\n<div class=\"abcfhaloans-content \">\n<div class=\"row justify-content-center\">\n<div class=\"col-md-8\">\n<h2>ABCs of FHA Loans<\/h2>\n<p class=\"text\">Learn everything you need to know about Federal Housing Administration (FHA) loans with this easy-to-follow guide. Start from the beginning or jump in wherever you are to continue!<\/p>\n<div class=\"pt-2\">\n<h2>Basics of FHA Loans<\/h2>\n<\/div>\n<h3 class=\"h5\">What are FHA Loans?<\/h3>\n<p class=\"text\"><strong>Federal Housing Administration (FHA) Loans<\/strong> are insured by Housing and Urban Development (HUD) which allows lenders to offer low down payment loans to homebuyers. FHA loans have been helping people become homeowners since 1934. FHA insures loans for first time home buyer mortgage loan, FHA streamline refinance, FHA regular refinance, cash-out refinance as well as home purchases by people who are NOT first-time home buyers. FHA however doesn\u2019t provide loans directly. Borrowers need to work with an FHA-approved lender to qualify for the home purchase or refinance loan.<\/p>\n<h3 class=\"h5\">Credit Score Requirements<\/h3>\n<div class=\"abcfhaloans-content\">\n<p class=\"text\">While FHA guidelines allow for much lower credit scores, most of the lenders require a minimum FICO credit score of <strong>640.<\/strong><\/p>\n<p class=\"text\">In some cases, a borrower may qualify even with a lower credit score,<\/p>\n<div class=\"list p1rem\">\n<p class=\"text\">FICO scores are usually categorized as such:<\/p>\n<ul>\n<li><strong> Good:<\/strong> above 700<\/li>\n<li><strong> Average: <\/strong> 680-700<\/li>\n<li><strong> Poor:<\/strong> below 620<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"content\">\n<div class=\"title\">\n<h3 class=\"h5\">Basic requirements, loan limits, and applying<\/h3>\n<\/div>\n<div class=\"abcfhaloans-content\">\n<p class=\"text\">Borrowers need to meet the following basic requirements to qualify for an FHA loan (please keep in mind that a particular lender may have their own set of guidelines):<\/p>\n<div class=\"list p1rem\">\n<ul>\n<li>The property must be owner-occupied<\/li>\n<li>FHA loans are available for 1-4-unit houses including single-family<\/li>\n<li>A minimum down payment of 3.5% is required. The down payment can be gifted from parents, children, siblings, or other close relatives<\/li>\n<li>An impound account is required on all FHA loans. As part of the impound account, payment for property taxes ad home insurance are broken down into monthly payments and are paid to the lender along with mortgage payments every month. The lender then makes a payment directly to the county or to the home insurance company when it is due.<\/li>\n<li>Two-year employment history is required. However, if the borrower went to school immediately prior to starting employment, the school years can be counted towards this requirement as long as the job is in the same field as the education.<\/li>\n<li>A borrower should have enough income to meet the maximum <strong>debt-to-income<\/strong> ratio requirement of<strong> 43%.<\/strong> In some cases, the ratio can be as high as <strong> 50%.<\/strong><\/li>\n<li>Upfront mortgage insurance (UFMIP) of 1.75% and annual mortgage insurance of 0.45% &#8211; 1.55% is required on all FHA loans.<\/li>\n<li>FHA offers 30-year-fixed, 15-year-fixed, and 5-year-ARM loans.<\/li>\n<\/ul>\n<\/div>\n<h3 class=\"h5\">Loan Limits<\/h3>\n<p class=\"text\">Now that we have covered the basic requirements, let\u2019s look at the <strong>loan limits<\/strong> for FHA loans. For 2024, the FHA national \u201cfloor\u201d limit for 1-unit houses was <strong> $498,257<\/strong>. This means that all counties in the country will at least have this as their loan limit. The FHA also classified several counties as \u201chigh-cost\u201d \u2013 loan limits in these counties are higher than $498,257. The maximum loan limits in some counties can be as high as $1,089,300 and in others, it\u2019s between the floor ($498,257) and the highest loan limit ($1,089,300). <a href=\"https:\/\/entp.hud.gov\/idapp\/html\/hicostlook.cfm\" target=\"_blank\" rel=\"noopener noreferrer\"><strong class=\"textcolor\"> Click here to find out the FHA loan limit for your county.<\/strong> <\/a><\/p>\n<h3 class=\"h5\">Applying for an FHA Loan<\/h3>\n<p><!--\n\n<p class=\"text\">To get an FHA loan, you need to work with an FHA-approved lender. If you would like to work directly with me to get pre-approved or get a rate quote, you can complete the FHA rate quote form <a href=\"[homeurl]\/todays-rates\"><strong class=\"textcolor\">here<\/strong><\/a> or complete the full loan application <a href=\"https:\/\/myloan.instamortgage.com\/homehub\/signup\/shashank@INSTAMORTGAGE.COM\" target=\"_blank\" rel=\"noopener noreferrer\"><strong class=\"textcolor\">here<\/strong><\/a><\/p>\n\n--><\/p>\n<p class=\"text\">To get an FHA loan, you need to work with an FHA-approved lender. If you would like to work directly with me to get pre-approved or get a rate quote, you can complete the FHA rate quote form <a href=\"https:\/\/xlnc.info\/instamortgage\/rate-quote\/\"><strong class=\"textcolor\">here<\/strong><\/a> or complete the full loan application <a href=\"https:\/\/app.instamortgage.com\/app\/signup\/partner\/Y9HPZKSD\" target=\"_blank\" rel=\"noopener noreferrer\"><strong class=\"textcolor\">here<\/strong><\/a><\/p>\n<\/div>\n<\/div>\n<p><!--\n\n<div class=\"text-center py1rem\">\n\n\n<div class=\"live-rates-ctta icon-02\"><a class=\"live-quote-cta\" href=\"[homeurl]\/quote-tool\/\">Get An<span class=\"pre-approved\">Instant Rate Quote<\/span><\/a><\/div>\n\n\n<\/div>\n\n--><br \/>\n\t\t\t<div class=\"textwidget\"><p><!--\n\n\n<div class=\"get-a-rate-quote-cta-banner\">\n\n\n<div class=\"row align justify-content-between\">\n\n\n<div class=\"col-md-6 text-center\"><img decoding=\"async\" class=\"img-fluid pl-3\" src=\"[themeurl]\/images\/get-a-rate-quote-cta-img.png\" alt=\"Get A Rate Quote\" \/><\/div>\n\n\n\n\n<div class=\"col-lg-4 col-md-6 col-12\">\n\n\n<div class=\"cta-banner-mt\"><a class=\"mortgage-pre-approved-btn\" href=\"[homeurl]\/quote-tool\/\">Get A Rate Quote<\/a><\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n--><\/p>\n<div class=\"get-a-rate-quote-cta-banner\">\n<div class=\"row align text-center justify-content-around\">\n<div class=\"col-md-6 text-right\"><img decoding=\"async\" class=\"img-fluid\" src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/themes\/btheme\/images\/get-a-rate-quote-cta-img-02.png\" alt=\"Get A Rate Quote\" \/><\/div>\n<div class=\"col-lg-4 col-md-6 col-12\">\n<div class=\"cta-banner-mt\"><a class=\"mortgage-pre-approved-btn\" href=\"https:\/\/xlnc.info\/instamortgage\/rate-quote\/\">Get A Rate Quote<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<\/div>\n\t\t<\/p>\n<div class=\"content\">\n<div class=\"pt-2\">\n<h2>FHA Loans &amp; Condominiums: What to Know<\/h2>\n<\/div>\n<div class=\"abcfhaloans-content\">\n<h3 class=\"h5\">Buying Condominiums using FHA loans<\/h3>\n<p class=\"text\">Only FHA-approved condominiums are eligible for FHA financing. Some townhomes are also classified as condos and hence should be on FHA-approved project lists. To find out if a condo project is on an approved list, visit <a href=\"https:\/\/www.mortgageblog.com\/how-to-get-the-list-of-all-fha-approved-condos-video\/\"><strong class=\"textcolor\">here<\/strong><\/a>.<\/p>\n<h3 class=\"h5\">Upfront and Monthly Mortgage Insurance Premium rates for FHA<\/h3>\n<p class=\"text\">FHA charges both an upfront mortgage insurance premium and monthly mortgage insurance on almost all the loans it insures.<\/p>\n<h3 class=\"h5\">Annual Mortgage Insurance Premium on Streamlined Refinance Endorsed before May 31, 2009<\/h3>\n<p class=\"text\">For a <a href=\"https:\/\/xlnc.info\/instamortgage\/fha-streamline-loan-information-benefits-and-rates\/\">Streamline Refinance transaction<\/a> that is refinancing FHA loans endorsed on or before May 31, 2009, the annual MIP will be only 55 bps regardless of the loan amount. For all other streamlined refinances, regular MIP rates will be charged.<\/p>\n<h3 class=\"h5\">FHA Monthly Mortgage Insurance Premium Calculator<\/h3>\n<p class=\"text\">Multiply the loan amount with the insurance factor and divide by 12 to get the monthly mortgage insurance payment. For example, if the loan amount is $400,000 and annual MIP is 120 bps, the monthly MIP payment would be \u2013 (400,000 x 0.0120)\/12 = <strong class=\"textbold\"> $400\/month<\/strong>.<\/p>\n<h3 class=\"h5\">FHA Upfront Mortgage Insurance Premium (UFMIP)<\/h3>\n<p class=\"text\">The upfront mortgage insurance premium on all FHA loans is 1.75% of the base loan amount. This applies to all loan terms and LTV ratios. FHA does allow financing of UFMIP into the loan amount. For example, if the loan amount is $400,000, instead of paying 1.75% or $7000 as the closing cost, you can add that to the loan amount and make the principal balance $407,000.<\/p>\n<h3 class=\"h5\">FHA Reduced Upfront Mortgage Insurance Premium on Streamlined Refinance Endorsed Before May 31, 2009<\/h3>\n<p class=\"text\">For a Streamline Refinance transaction that is refinancing FHA loans endorsed on or before May 31, 2009, the UFMIP will be only 0.01% of the base loan amount. For all other streamlined refinances, regular UFMIP rates will be charged.<\/p>\n<\/div>\n<\/div>\n<div class=\"content\">\n<h3 class=\"h5\">Annual Mortgage Interest Premium for FHA Loans<\/h3>\n<div class=\"abcfhaloans-content\">\n<p class=\"text\">Here are the annual mortgage interest premiums for FHA loans:<\/p>\n<div class=\"table-responsive\">\n<table id=\"data-table\" class=\"table table-hover table-bordered text-center\">\n<thead>\n<tr class=\"table-primary\">\n<td colspan=\"3\">Term &gt; 15 Years<\/td>\n<\/tr>\n<tr>\n<th scope=\"col\">Basic loan amt.<\/th>\n<th scope=\"col\">LTV<\/th>\n<th scope=\"col\">MIP<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\u2264 $625,500<\/td>\n<td>\u2264 95.00%<\/td>\n<td>130 bps<\/td>\n<\/tr>\n<tr>\n<td>\u2264 $625,500<\/td>\n<td>&gt; 95.00%<\/td>\n<td>135 bps<\/td>\n<\/tr>\n<tr>\n<td>&gt; $625, 500<\/td>\n<td>\u2264 95.00%<\/td>\n<td>150 bps<\/td>\n<\/tr>\n<tr>\n<td>&gt; $625,500<\/td>\n<td>&gt; 95.00%<\/td>\n<td>155 bps<\/td>\n<\/tr>\n<tr class=\"table-primary\">\n<td colspan=\"3\">Term \u2264 15 Years<\/td>\n<\/tr>\n<tr>\n<td>\u2264 $625,500<\/td>\n<td>78.01% &#8211; 90.00%<\/td>\n<td>45 bps<\/td>\n<\/tr>\n<tr>\n<td>\u2264 $625,500<\/td>\n<td>&gt; 90.00%<\/td>\n<td>70 bps<\/td>\n<\/tr>\n<tr>\n<td>&gt; $625, 500<\/td>\n<td>78.01% &#8211; 90.00%<\/td>\n<td>70 bps<\/td>\n<\/tr>\n<tr>\n<td>&gt; $625,500<\/td>\n<td>&gt; 90.00%<\/td>\n<td>95 bps<\/td>\n<\/tr>\n<tr class=\"table-primary\">\n<td colspan=\"3\">Term \u2264 15 Years<\/td>\n<\/tr>\n<tr>\n<td>Any amount<\/td>\n<td>\u2264 78.00%<\/td>\n<td>45 bps<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><!--\n\n\n<div class=\"container\">\n\n\n<div class=\"text-center\"><img decoding=\"async\" class=\"img-fluid\" src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/uploads\/2023\/03\/Brown-Modern-Real-Estate-Banner.png\"><\/div>\n\n\n<\/div>\n\n\n\n\n<div class=\"abcfhaloans-page guides-detailed-page\">\n\n\n<div class=\"container\">\n\n\n<div class=\"abcfhaloans-content \">\n\n\n<div class=\"row justify-content-center\">\n\n\n<div class=\"col-md-8 col-lg-6\">\n\n\n<div class=\"content text-center \">\n\n\n<div class=\"title\">\n\n\n<h3 class=\"textcolor text-capitalize\">ABCs of FHA Loans<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">Learn everything you need to know about Federal Housing Administration (FHA) loans with this easy-to-follow guide. Start from the beginning or jump in wherever you are to continue!<\/p>\n\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div class=\"coltab-section p2rem\">\n\n\n<div class=\"row\">\n\n\n<div class=\"col-md-5\">\n\n\n<div class=\"collapse-section\">\n\n\n<div id=\"accordionGuides\" class=\"accordion\">\n\n\n<div class=\"card\">\n\n\n<div class=\"card-header\"><button class=\"btn btn-link btn-block text-left\" type=\"button\" data-toggle=\"collapse\" data-target=\"#basicfhaloan\"><span class=\"number\">1<\/span> Basics of FHA Loans<\/button><\/div>\n\n\n\n\n<div id=\"basicfhaloan\" class=\"collapse show\" data-parent=\"#accordionGuides\">\n\n\n<div class=\"card-body\">\n\n\n<ul id=\"pills-tab\" class=\"nav flex-column nav-pills\">\n \t\n\n<li class=\"nav-item\"><a id=\"onecol\" class=\"nav-link active\" href=\"#wtfhaloan\" data-toggle=\"pill\">What are FHA Loans?<\/a><\/li>\n\n\n \t\n\n<li class=\"nav-item\"><a id=\"twocol\" class=\"nav-link\" href=\"#creditscore\" data-toggle=\"pill\">Credit Score Requirements<\/a><\/li>\n\n\n \t\n\n<li class=\"nav-item\"><a id=\"threecol\" class=\"nav-link\" href=\"#basicrequire\" data-toggle=\"pill\">Basic requirements, loan limits, and applying <\/a><\/li>\n\n\n<\/ul>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div class=\"card\">\n\n\n<div class=\"card-header\"><button class=\"btn btn-link btn-block text-left collapsed\" type=\"button\" data-toggle=\"collapse\" data-target=\"#fhaloancondmnms\"><span class=\"number\">2<\/span> FHA Loans: Buying Condominiums<\/button><\/div>\n\n\n\n\n<div id=\"fhaloancondmnms\" class=\"collapse\" data-parent=\"#accordionGuides\">\n\n\n<div class=\"card-body\">\n\n\n<ul id=\"pills-tab1\" class=\"nav flex-column nav-pills\">\n \t\n\n<li class=\"nav-item\"><a id=\"fourcol\" class=\"nav-link\" href=\"#wahttoknow\" data-toggle=\"pill\">What to Know<\/a><\/li>\n\n\n \t\n\n<li class=\"nav-item\"><a id=\"fivecol\" class=\"nav-link\" href=\"#mip\" data-toggle=\"pill\">Annual MIP for FHA Loans<\/a><\/li>\n\n\n<\/ul>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div class=\"col-md-7\">\n\n\n<div class=\"tab-section\">\n\n\n<div id=\"pills-tabContent\" class=\"tab-content\">\n\n\n<div id=\"wtfhaloan\" class=\"tab-pane fade show active\">\n\n\n<div class=\"content\">\n\n\n<div class=\"title\">\n\n\n<h3>What are FHA Loans?<\/h3>\n\n\n<\/div>\n\n\n\n\n<div class=\"abcfhaloans-content\">\n\n\n<p class=\"text\"><strong>Federal Housing Administration (FHA) Loans <\/strong>are insured by Housing and Urban Development (HUD) which allows lenders to offer low down payment loans to homebuyers. FHA loans have been helping people become homeowners since 1934. FHA insures loans for first time home buyer mortgage loan, FHA streamline refinance, FHA regular refinance, cash-out refinance as well as home purchases by people who are NOT first-time home buyers. FHA however doesn\u2019t provide loans directly. Borrowers need to work with an FHA-approved lender to qualify for the home purchase or refinance loan.<\/p>\n\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div id=\"creditscore\" class=\"tab-pane fade\">\n\n\n<div class=\"content\">\n\n\n<div class=\"title\">\n\n\n<h3>Credit Score Requirements<\/h3>\n\n\n<\/div>\n\n\n\n\n<div class=\"abcfhaloans-content\">\n\n\n<p class=\"text\">While FHA guidelines allow for much lower credit scores, most of the lenders require a minimum FICO credit score of <strong>640.<\/strong><\/p>\n\n\n\n\n<p class=\"text\">In some cases, a borrower may qualify even with a lower credit score,<\/p>\n\n\n\n\n\n<div class=\"list p1rem\">\n\n\n<p class=\"text\">FICO scores are usually categorized as such:<\/p>\n\n\n\n\n\n<ul>\n \t\n\n<li><strong> Good:<\/strong> above 700<\/li>\n\n\n \t\n\n<li><strong> Average: <\/strong> 680-700<\/li>\n\n\n \t\n\n<li><strong> Poor:<\/strong> below 620<\/li>\n\n\n<\/ul>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div id=\"basicrequire\" class=\"tab-pane fade\">\n\n\n<div class=\"content\">\n\n\n<div class=\"title\">\n\n\n<h3>Basic requirements, loan limits, and applying<\/h3>\n\n\n<\/div>\n\n\n\n\n<div class=\"abcfhaloans-content\">\n\n\n<p class=\"text\">Borrowers need to meet the following basic requirements to qualify for an FHA loan (please keep in mind that a particular lender may have their own set of guidelines):<\/p>\n\n\n\n\n\n<div class=\"list p1rem\">\n\n\n<ul>\n \t\n\n<li>The property must be owner-occupied<\/li>\n\n\n \t\n\n<li>FHA loans are available for 1-4-unit houses including single-family<\/li>\n\n\n \t\n\n<li>A minimum down payment of 3.5% is required. The down payment can be gifted from parents, children, siblings, or other close relatives<\/li>\n\n\n \t\n\n<li>An impound account is required on all FHA loans. As part of the impound account, payment for property taxes ad home insurance are broken down into monthly payments and are paid to the lender along with mortgage payments every month. The lender then makes a payment directly to the county or to the home insurance company when it is due.<\/li>\n\n\n \t\n\n<li>Two-year employment history is required. However, if the borrower went to school immediately prior to starting employment, the school years can be counted towards this requirement as long as the job is in the same field as the education.<\/li>\n\n\n \t\n\n<li>A borrower should have enough income to meet the maximum <strong>debt-to-income<\/strong> ratio requirement of<strong> 43%.<\/strong> In some cases, the ratio can be as high as <strong> 50%.<\/strong><\/li>\n\n\n \t\n\n<li>Upfront mortgage insurance (UFMIP) of 1.75% and annual mortgage insurance of 0.45% - 1.55% is required on all FHA loans.<\/li>\n\n\n \t\n\n<li>FHA offers 30-year-fixed, 15-year-fixed, and 5-year-ARM loans.<\/li>\n\n\n<\/ul>\n\n\n<\/div>\n\n\n\n\n<div class=\"title\">\n\n\n<h3>Loan Limits<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">Now that we have covered the basic requirements, let\u2019s look at the <strong>loan limits<\/strong> for FHA loans. For 2020, the FHA national \u201cfloor\u201d limit for 1-unit houses was <strong> $331,760<\/strong>. This means that all counties in the country will at least have this as their loan limit. The FHA also classified several counties as \u201chigh-cost\u201d \u2013 loan limits in these counties are higher than $331,760. The maximum loan limits in some counties can be as high as $765,600 and in others, it\u2019s between the floor ($331,760) and the highest loan limit ($765,600). <a href=\"https:\/\/entp.hud.gov\/idapp\/html\/hicostlook.cfm\" target=\"_blank\" rel=\"noopener noreferrer\"><strong class=\"textcolor\"> Click here to find out the FHA loan limit for your county.<\/strong> <\/a><\/p>\n\n\n\n\n\n<div class=\"title\">\n\n\n<h3>Applying for an FHA Loan<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">To get an FHA loan, you need to work with an FHA-approved lender. If you would like to work directly with me to get pre-approved or get a rate quote, you can complete the FHA rate quote form <a href=\"[homeurl]\/todays-rates\"><strong class=\"textcolor\">here<\/strong><\/a> or complete the full loan application <a href=\"https:\/\/myloan.arcuslending.com\/borrower\/onboarding\/shashank@ARCUSLENDING.COM\" target=\"_blank\" rel=\"noopener noreferrer\"><strong class=\"textcolor\">here<\/strong><\/a><\/p>\n\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div id=\"wahttoknow\" class=\"tab-pane fade\">\n\n\n<div class=\"content\">\n\n\n<div class=\"title\">\n\n\n<h3>FHA Loans &amp; Condominiums: What to Know<\/h3>\n\n\n<\/div>\n\n\n\n\n<div class=\"abcfhaloans-content\">\n\n\n<div class=\"title\">\n\n\n<h3>Buying Condominiums using FHA loans<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">Only FHA-approved condominiums are eligible for FHA financing. Some townhomes are also classified as condos and hence should be on FHA-approved project lists. To find out if a condo project is on an approved list, visit <a href=\"https:\/\/www.mortgageblog.com\/how-to-get-the-list-of-all-fha-approved-condos-video\/\"><strong class=\"textcolor\">here<\/strong><\/a>.<\/p>\n\n\n\n\n\n<div class=\"title\">\n\n\n<h3>Upfront and Monthly Mortgage Insurance Premium rates for FHA<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">FHA charges both an upfront mortgage insurance premium and monthly mortgage insurance on almost all the loans it insures.<\/p>\n\n\n\n\n\n<div class=\"title\">\n\n\n<h3>Annual Mortgage Insurance Premium on Streamlined Refinance Endorsed before May 31, 2009<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">For a Streamline Refinance transaction that is refinancing FHA loans endorsed on or before May 31, 2009, the annual MIP will be only 55 bps regardless of the loan amount. For all other streamlined refinances, regular MIP rates will be charged.<\/p>\n\n\n\n\n\n<div class=\"title\">\n\n\n<h3>FHA Monthly Mortgage Insurance Premium Calculator<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">Multiply the loan amount with the insurance factor and divide by 12 to get the monthly mortgage insurance payment. For example, if the loan amount is $400,000 and annual MIP is 120 bps, the monthly MIP payment would be \u2013 (400,000 x 0.0120)\/12 = <strong class=\"textbold\"> $400\/month<\/strong>.<\/p>\n\n\n\n\n\n<div class=\"title\">\n\n\n<h3>FHA Upfront Mortgage Insurance Premium (UFMIP)<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">The upfront mortgage insurance premium on all FHA loans is 1.75% of the base loan amount. This applies to all loan terms and LTV ratios. FHA does allow financing of UFMIP into the loan amount. For example, if the loan amount is $400,000, instead of paying 1.75% or $7000 as the closing cost, you can add that to the loan amount and make the principal balance $407,000.<\/p>\n\n\n\n\n\n<div class=\"title\">\n\n\n<h3>FHA Reduced Upfront Mortgage Insurance Premium on Streamlined Refinance Endorsed Before May 31, 2009<\/h3>\n\n\n<\/div>\n\n\n\n\n<p class=\"text\">For a Streamline Refinance transaction that is refinancing FHA loans endorsed on or before May 31, 2009, the UFMIP will be only 0.01% of the base loan amount. For all other streamlined refinances, regular UFMIP rates will be charged.<\/p>\n\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n\n\n<div id=\"mip\" class=\"tab-pane fade\">\n\n\n<div class=\"content\">\n\n\n<div class=\"title\">\n\n\n<h3>Annual Mortgage Interest Premium for FHA Loans<\/h3>\n\n\n<\/div>\n\n\n\n\n<div class=\"abcfhaloans-content\">\n\n\n<p class=\"text\">Here are the annual mortgage interest premiums for FHA loans:<\/p>\n\n\n\n\n\n<div class=\"table-responsive\">\n\n\n<table class=\"table table-hover table-bordered text-center\" id=\"data-table\">\n\n\n<thead>\n\n\n<tr class=\"table-primary\">\n\n\n<td colspan=\"3\">Term &gt; 15 Years<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<th scope=\"col\">Basic loan amt.<\/th>\n\n\n\n\n<th scope=\"col\">LTV<\/th>\n\n\n\n\n<th scope=\"col\">MIP<\/th>\n\n\n<\/tr>\n\n\n<\/thead>\n\n\n\n\n<tbody>\n\n\n<tr>\n\n\n<td>\u2264 $625,500<\/td>\n\n\n\n\n<td>\u2264 95.00%<\/td>\n\n\n\n\n<td>130 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>\u2264 $625,500<\/td>\n\n\n\n\n<td>&gt; 95.00%<\/td>\n\n\n\n\n<td>135 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>&gt; $625, 500<\/td>\n\n\n\n\n<td>\u2264 95.00%<\/td>\n\n\n\n\n<td>150 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>&gt; $625,500<\/td>\n\n\n\n\n<td>&gt; 95.00%<\/td>\n\n\n\n\n<td>155 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr class=\"table-primary\">\n\n\n<td colspan=\"3\">Term \u2264 15 Years<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>\u2264 $625,500<\/td>\n\n\n\n\n<td>78.01% - 90.00%<\/td>\n\n\n\n\n<td>45 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>\u2264 $625,500<\/td>\n\n\n\n\n<td>&gt; 90.00%<\/td>\n\n\n\n\n<td>70 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>&gt; $625, 500<\/td>\n\n\n\n\n<td>78.01% - 90.00%<\/td>\n\n\n\n\n<td>70 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>&gt; $625,500<\/td>\n\n\n\n\n<td>&gt; 90.00%<\/td>\n\n\n\n\n<td>95 bps<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr class=\"table-primary\">\n\n\n<td colspan=\"3\">Term \u2264 15 Years<\/td>\n\n\n<\/tr>\n\n\n\n\n<tr>\n\n\n<td>Any amount<\/td>\n\n\n\n\n<td>\u2264 78.00%<\/td>\n\n\n\n\n<td>45 bps<\/td>\n\n\n<\/tr>\n\n\n<\/tbody>\n\n\n<\/table>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n<\/div>\n\n\n--><\/p>\n<h2 class=\"cprp_section_title\">You May Also Like:<\/h2><div class=\"cprp_items list \"><ul><li><div class=\"cprp_data\"><div class=\"cprp_title\"><a href=\"https:\/\/xlnc.info\/instamortgage\/understanding-mortgage-insurance-premium-mip\/\" title=\"Understanding Mortgage Insurance Premium (MIP)\">Understanding Mortgage Insurance Premium (MIP)<\/a><\/div><div class=\"cprp_percentage\">79<\/div><div class=\"cprp_excerpt\"><a href=\"https:\/\/xlnc.info\/instamortgage\/understanding-mortgage-insurance-premium-mip\/\" title=\"Understanding Mortgage Insurance Premium (MIP)\"><img src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/uploads\/2021\/08\/Insurance1-150x150.jpg\" class=\"cprp_thumbnail\" title=\"Understanding Mortgage Insurance Premium (MIP)\" alt=\"Understanding Mortgage Insurance Premium (MIP)\" \/><\/a><span class=\"cprp_excerpt_content\">Disclaimer \u2013 all information in this article is accurate as of the date this article was written * The FHA Mortgage Insurance Premium is an important part of every FHA loan. 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Up Front Mortgage Insurance Premium&hellip;<\/span><\/div><div class=\"cprp_tags\">Tags: loan, insurance, mortgage, fha, $<\/div><\/div><\/li><li><div class=\"cprp_data\"><div class=\"cprp_title\"><a href=\"https:\/\/xlnc.info\/instamortgage\/fha-loans-insurance-premiums-mip-pmi-rates-calculator\/\" title=\"FHA Loans Insurance Premiums (MIP\/PMI) - Rates + Calculator\">FHA Loans Insurance Premiums (MIP\/PMI) - Rates + Calculator<\/a><\/div><div class=\"cprp_percentage\">75<\/div><div class=\"cprp_excerpt\"><a href=\"https:\/\/xlnc.info\/instamortgage\/fha-loans-insurance-premiums-mip-pmi-rates-calculator\/\" title=\"FHA Loans Insurance Premiums (MIP\/PMI) - Rates + Calculator\"><img src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/uploads\/2023\/07\/fha-loans-insurance-premium-rates-calculator-150x150.jpg\" class=\"cprp_thumbnail\" title=\"FHA Loans Insurance Premiums (MIP\/PMI) - Rates + Calculator\" alt=\"FHA Loans Insurance Premiums (MIP\/PMI) - Rates + Calculator\" \/><\/a><span class=\"cprp_excerpt_content\">The ultimate guide to Upfront and Monthly Mortgage Insurance Premiums (MIP\/PMI) rates for FHA purchase loans and (streamline) refinances. 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