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HUD GUIDELINES on FHA MORTGAGE INSURANCE PREMIUM
What are the latest HUD GUIDELINES on the 9ne time up-front, front-end and the annual FHA MIP pn 15 year and 30 year fixed rate Mortgage loans versus loan-to-value? Will the Upfront and annual FHA MORTGAGE INSURANCE PREMIUM BE PARTIALLY CREDITED?
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For most FHA forward loans, purchase and refinance, the one-time charge for Up Front Mortgage Insurance Premium (UFMIP) stays at 1.75% of the base loan amount. This fee is the same whether the loan is for 15 years or 30 years, regardless of the loan-to-value ratio. Lenders generally roll this fee into the mortgage amount; however, the borrower can pay it at closing.
The annual MIP (which is paid monthly as part of the mortgage payment) depends on a variety of factors, including the loan term, loan size, and the loan-to-value ratio, which is directly related to the size of the down payment. The 2023-05 Mortgagee Letter established these rates, with a loan endorsement date of March 20, 2023. As of the middle of 2026, there have been no changes to these MIP rates or the term for standard single-family forward FHA loans.
2026 FHA Loan LimitsLow Cost Areas:
- A base loan amount of $541,287 for a single-family home.
High Cost Areas:
- A base loan amount of $1,249,125 for a single-family home.
- These limits are revised annually, county by county.
- The MIP threshold, provided below, currently remains $726,200.
For Loans Longer than 15 Years (e.g., 30-Year Fixed)Base Loan Amount $726,200 or Less
- LTV 90% or less (10% or more Down Payment): 0.50% Annual MIP.
- LTV Above 90% up to 95%: 0.50%
- LTV Above 95% (less than 5% Down): 0.55%
Base Loan Amount Above $726,200
- LTV 90% or less: 0.70%
- LTV Above 90% up to 95%: 0.70%
- LTV Above 95%: 0.75%
How Long You Pay It (For Loans Endorsed On/After June 3, 2013)
- 11 Years if LTV is 90% or Less (10% or More Down Payment).
- Full Loan Term if LTV is Greater than 90%.
For Loans 15 Years or Shorter (e.g., 15-Year Fixed)MIP is Lower for Shorter Loan Terms.Base Loan Amount $726,200 or Less
- LTV 90% or Less: 0.15%
- LTV Above 90%: 0.40%
Base Loan Amount Above $726,200
- LTV 78% or Less: 0.15%
- LTV Above 78% up to 90%: 0.40%
- LTV Above 90%: 0.65%
How Long You Pay It: Usually 11 Years for Lower LTVs. Full Term for Higher LTVs.Important Notes:
- The $726,200 MIP threshold is based on the 2023 policy update to the national conforming limit and has not been adjusted to align with the increasing FHA loan limits.
- Special considerations for some streamline refinances, Hawaiian Home Lands, and other select programs.
- Always use the specific FHA case number and check the endorsement date.
Partial credits or refunds for Upfront and Annual MIPUpfront MIP:
- Normally, no cash refunds occur.
- Still, if you refinance from one FHA loan to another within 3 years of the original closing, you earn a partial credit (prorated based on how long you wait).
- This bonus reduces UFMIP on the new loan, using a declining scale (most significant early and zero credit after 36 months).
- The lender automatically handles this.
Annual MIP:
- There is no typical partial refund or credit for loan payoff or refinance.
- Payments will end according to the duration schedule above or when the balance is paid to zero.
- There is no reimbursement for the MIP that was paid.
To obtain the best and most accurate information, visit HUD’s official website, review resources such as Mortgagee Letter 2023-05 and the FHA Single Family Housing Policy Handbook 4000.1, or contact an FHA-approved lender. Guidelines can have case-by-case specific nuances based on the borrower’s location, loan particulars, and the date when the loan was taken.
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