FHA Requirements: Mortgage Insurance for 2022

FHA Requirements

Mortgage Insurance (MIP) for FHA Insured Loan

mortgage indemnity 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, careless of the come of down payment .

2022 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%)

2022 MIP Rates for FHA Loans Up to 15 Years

Homebuyers who can afford to pay off their loans agile and choose 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 shell 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 loanword. 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 presently at 1.75 % of the base loanword amount. This applies regardless of the amortization term or LTV proportion .

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 presently 1.0 percentage of the basis loan total .

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 bits per second, careless of the base loan total 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 follow :

  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 surveil 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).

FHA Loan Requirements

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FHA Loan Articles and Mortgage News

FHA Loan Income Rules
May 15, 2022 – When you apply for an FHA mortgage, your lend policeman will ask you for proofread of employment and income in the form of W2s or other give records, plus tax data and bank history statements. Changing the room you earn a be may or may not complicate your FHA home lend application .
FHA Home Loan Questions and Answers: 5 Things to Know
May 10, 2022 – Buying a home involves many small details and first-time homebuyers frequently have to resort to checklists or other means to keep everything organized. What do you need to know at the begin of your first home buy travel ?

How to Compare Home Loan Offers
May 7, 2022 – Would you buy or rent the identical inaugural property you viewed in the house-hunting work ? few people would take the first property available without comparing it to others. Why would you treat the mortgage part of your home ownership journey any differently ?
Things to Consider Ahead of Your FHA Home Loan Application
May 5, 2022 – What do you need to consider in the planning stages of your FHA home lend ? Some may not be certain how hanker it takes to save up for a down payment and close costs, or what it takes to prepare credit ahead of a home lend .
Mortgage Planning: Beware Credit Score Drops
April 23, 2022 – A few bare things can happen that will hurt your credit scores before you apply for a home loan. These are not the only issues, but what we discuss below are some of the most common problems to anticipate. A late or miss payment can hurt your FICO scores .

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