Mortgage Insurance

Can FHA MIP be removed?

Short answer

Generally not on most current FHA loans without a refinance. The exception: 10%+ down payment FHA loans drop annual MIP after 11 years.

Plain-English explanation

What this actually means.

If you put 3.5%–9.99% down and have a current FHA loan, annual MIP stays for the loan's full term. The standard removal path is a refinance into conventional once you have ~20% equity.

Practical example

What this looks like on a real file.

Borrowers often call this 'PMI,' but FHA technically uses MIP. For most FHA loans originated since 2013 with a down payment under 10%, annual MIP is currently scheduled to remain for the life of the loan. With 10% or more down, MIP may end after 11 years. Specific HUD rules can change — the practical removal path for a low-down-payment FHA loan is usually a refinance into a conventional loan once the file supports it.

What can change the answer?

Where this can move.

Loan term, LTV at origination, HUD's published MIP schedule at the time of origination, and refinance options can change the long-term cost.

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Keep reading

Can FHA MIP be removed?

What this actually means.

What this looks like on a real file.

Where this can move.

Ask the question. Get the straight answer.

More FHA questions on Mortgage Insurance.