What is the difference between PMI and FHA MIP?
PMI (conventional) is generally removable. FHA MIP usually is not. PMI is subject to automatic termination commonly tied to 78% of original value and borrower-requested cancellation commonly around 80% LTV — both subject to servicer rules, payment history, and HPA. FHA MIP stays for the life of most loans originated after 2013. PMI cost varies by credit; FHA MIP is the same regardless of credit score.
What this actually means.
Three structural differences: 1) Removability — PMI cancels under HPA rules; FHA MIP stays for most loans regardless of LTV; 2) Pricing — PMI scales with credit score (better credit = lower PMI); FHA MIP is flat regardless of credit; 3) Upfront — FHA charges 1.75% upfront MIP that's typically financed; conventional PMI is monthly-only on most files unless single-premium is chosen. Over a 7-10 year hold, removable PMI usually beats lifelong MIP for borrowers with credit above ~680.
Where this can move.
Credit score, LTV, coverage percentage, occupancy, and PMI provider can change cost. PMI removal is governed by HPA and servicer policy.
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More conventional questions on PMI.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.