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Does a FHA loan require mortgage insurance through out the of the loan
Does a FHA loan require mortgage insurance through out the whole life of the loan?
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1 Reply
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Typically, if the down payment is lower than 10%, then FHA loans need mortgage insurance all through the life of the loan. You must pay this monthly with an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). You can cancel the mortgage insurance after 11 years if you make a down payment of at least 10%. For conventional loans, when your loan reaches 20% equity, private mortgage insurance (PMI) can be taken out; however, with FHA loans, less than 10% down, MIP is needed until it is paid off.