FHA- Mortgage Insurance info
The annual MIP (paid monthly) will be canceled under the following conditions:
- For mortgages with terms of more than 15 years, the annual MIP will be cancelled when the LTV ratio reaches 78%, provided the mortgagor has paid the annual MIP for at least five years.
- For mortgages with terms 15 years and less and with the initial LTV ratios 90% and greater, the annual MIP (paid monthly) will be canceled when the LTV 78%, irrespective of the length of time the mortgagor has paid the annual MIP.
- Mortgages with terms 15 years and less and with initial LTV ratios of 89.99% and less will not be charged annual MIPs, but will continue to require payment of the upfront mortgage insurance premiums.
- FHA will determine when a borrower has reached the 78% LTV ratio based on the lower of the sales price or appraised value at origination. New appraised values will not be considered.