FHA requires a mortgage insurance premium (MIP) for its homebuying programs.
An up-front premium of 1.50% of the loan amount is paid at closing and
can be financed into the mortgage amount. In addition, there is a monthly
MIP amount included in the PITI of .50%. Condos do not require up front
MIP - only monthly MIP.
The mortgage insurance premium paid on an FHA loan is always significantly
higher than on a conventional program. On an FHA loan the borrower will
be charged a mortgage insurance premium equal to 1.50% of the purchase
price of the property and a renewal premium of .500% in subsequent years.
By contrast the mortgage insurance premium charged at closing on a conventional
program is as low as .500% (with 10% down payment) with renewal rate in
subsequent years as low as .300% in subsequent years.
• Bankruptcy and Foreclosure
• FHA Bridal Registry Account
• FHA Mortgage Insurance
• HUD Reverse Mortgage Program
• Refunds on FHA Loans
• Single Family Rehab Mortgage Program
• Streamline Refinancing for
FHA Mortgages
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