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FHA Mortgage Insurance

FHA Single Family Annual Mortgage Insurance Premium (Annual MIP) will rise effective April 1, 2013 and June 3, 2013. How long you have MIP will also change effective June 3, 2013. UpFront Mortgage Insurance Premium (UFMIP) will not change.

UpFront Mortgage Insurance Premiums:

  • Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 percent
  • Streamline Refinances (all types) = 1.75 percent (unless streamline refinancing an FHA loan endorsed before May 31, 2009. See below.)
  • Home Equity Conversion Mortgages = 2.00 percent

Below is the table showing the new annual and UpFront FHA premiums effective April 1, 2013 (15 year and 78% or less LTV MIP changes are effective June 3, 2013). For loan amounts over $625,000, please read the full Mortgagee Letter for additional information.

Up Front and Monthly Mortgage Insurance Premium (UFMIP) Chart

FHA Mortgage Premium Schedule

For Case Numbers Assigned on or after 4-1-2013

LTV
Loan Term

Purchase, Full Credit Qualifying Refinances (Rate/Term & Cash-out) & Streamline Refinances
UFMIP Monthly MIP

>95% LTV
>15 Years Term

1.75% 1.35%

= or < 95% LTV
>15 Years Term

1.75% 1.30%

>90% LTV
= or < 15 Years Term

1.75% 0.70%

= or < 90% LTV
= or < 15 Years Term

1.75% 0.45%

The annual premium for HECM (Reverse Mortgage) transactions will remain at 1.25 percent and upfront premium will remain at 2.00 percent.

The requirements for the cancellation of annual mortgage insurance premiums are changing effective June 3, 2013. See table below for details:

TERM LTV (%) PREVIOUS NEW
≤ 15 yrs ≤ 78 No annual MIP 11 years
≤ 15 yrs > 78 – 90.00 Cancelled at 78% LTV 11 years
≤ 15 yrs > 90.00 Cancelled at 78% LTV Loan term
> 15 yrs ≤ 78 5 years 11 years
> 15 yrs > 78 – 90.00 Cancelled at 78% LTV & 5 yrs 11 years
> 15 yrs > 90.00 Cancelled at 78% LTV & 5 yrs Loan term

 

Effective June 11, 2012, FHA will lower both the upfront mortgage insurance premium and annual mortgage insurance premium for all streamline refinances that are refinances of FHA loans endorsed on or before May 31, 2009.

For all SF Forward Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps, regardless of the base loan mount. The endorsement date is on the Case Query screen in FHA Connection. This change is effective for case numbers assigned on or after June 11, 2012.

For all SF Forward Streamline Refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009, the UFMIP will decrease from 1 percent to 0.01 percent of the base loan amount. The endorsement date is on the Case Query screen in FHA Connection. This change is effective for case numbers assigned on or after June 11, 2012.

Read the full mortgagee letter (pdf)