FHA MIP Chart
Contact info@MortgageTrainingToday.com to stay updated on FHA changes.
FHA Single Family Mortgage Insurance
Upfront and Annual Mortgage Insurance Premiums
Loan Terms Greater than 15 years
Effective as of October 1, 2008 to September 30, 2010
|
|
Upfront Mortgage Insurance Premiums (UFMIP) are added to the Base FHA Mortgage and financed into the loan
|
|
Purchase Money Mortgages and
Full Qualifying Refinances
|
1.75%
|
| EFFECTIVE APRIL 5, 2010 THE UFMIP WILL BE INCREASING |
2.25% |
|
Streamline Refinances
All Types
|
1.50%
|
|
FHA Secure
Delinquent Mortgagors
|
3.00%
|
|
Annual Premiums will be charged based on the initial LTV ratio and length of the mortgage (except for FHASecure delinquent mortgages)
|
|
Purchase Money Mortgages, Full-Qualifying Refinances, and Streamline Refinances
|
|
LTV
|
Annual for Loans
Over 15 years
|
LTV
|
Annual for Loans
15 years of Less
|
|
LTV < 95%
|
.50
|
LTV < 90%
|
None
|
|
LTV > 95%
|
.55
|
LTV > 90%
|
.25
|
|
FHA Secure Delinquent Mortgagors
Annual Premiums for all Loans regardless of term
|
|
LTV < 95%
|
.50
|
|
LTV > 95%
|
.55
|
|
Calculating FHA Monthly and Upfront MIP
|
|
|
|
FHA Upfront MIP UFMIP
|
|
UFMIP based on MIP Chart
Upfront MIP + Base Mortgage = Full Mortgage
Full Mortgage and Base Mortgage must be different
LTV is calculated on the Base Mortgage Amount
|
|
$175,000 x 1.75% = $3,062.50 (.50 will be paid in cash at closing)
$175,000 + $3,062.00 = $178,062.00 Full Mortgage
|
|
FHA Monthly MIP
|
|
Base Mortgage x Monthly factor ¸ 12 = Monthly MIP
|
|
$175,000 x .55% ¸ 12 = $80.21 monthly MIP
|
|
|
|
Most FHA Loans require both UFMIP and Monthly MIP - Check the appropriate MIP chart for your loan perimeters.
|
Borrowers who have decision credit scores below 500 must have loan-to-value ratios less than 90 percent to qualify for an FHA-insured mortgage.
Cancellation of Annual MIP
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled with the LTV reaches 78%.
The borrower cannot request that it be removed once they feel they have reached 20% equity.
The borrower would have to refinance to have it removed before then.
The Annual MIP of .50% will be collected the entire duration of the loan for Condo’s and 203k loans closed prior to January 1, 2006, regardless of the term or LTV.
Loan Amount Calculations
The following applies to the Mortgage Calculation
FHA has two different loan amounts
Base Mortgage is the calculated loan amount without the financed MIP
MIP chart is following
FHA MIP (Mortgage Insurance Premium) is done as a Split Premium with part added to the loan amount and part monthly
Monthly MIP is based on the Base Mortgage Amount
Total Mortgage Amount is the Base Mortage plus FHA required repairs or allowable improvements plus the financed MIP
Total Mortgage Amount cannot exceed the county maximum listed at www.hud.gov
|
FHA Mortgage Amount Types
|
|
Base Mortgage
|
Purchase Price or Appraised Value (whichever is lower) x the appropriate factor per the table above if borrower is paying their own closing costs
|
|
Origination Fee is calculated on the Base Mortgage
Monthly MIP is calculated on the Base Mortgage
|
|
Total Mortgage
|
Base Mortgage + the Upfront MIP
|
|
Discount Points are calculated on the Total Mortgage
Yield Spread is typically calculated on the Total Mortgage
FHA required repairs or allowable improvements can be added to the Base Mortgage for the Total Mortgage
Qualifying is based on the Total Mortgage
|
|
Mortgage Amount Calculation
|
|
Purchase Price
|
$225,000
|
3.5% down
|
$7,875
|
Base Mortgage
|
$217,125
|
|
Calculating UFMIP – Up Front Mortgage Insurance Premium
|
|
Base Mortgage
|
$217,125
|
X
|
1.75% UFMIP
|
$3,799.69
|
Base Mortgage +
UFMIP
|
$220,924
Full Mortgage
|
|
Calculating Monthly MIP
|
|
Base Mortgage
|
$217,125
|
X
|
.55%
|
$1,194.19
|
¸ 12 =
Monthly MIP
|
$99.52
|
|
Calculating Origination Fee
|
|
Base Mortgage
|
$217,125
|
X
|
1%
|
$2,171.25
|
Maximum of 1% Origination Fee
|
|
Calculating Discount Points
|
|
Full Mortgage
|
$220,924
|
X
|
1% Discount Point
|
$2,209.24
|
