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FHA – Mortgage Insurance No Matter What the LTV IS

Starting in June, FHA will require Mortgage Insurance (MI) no matter how low the loan-to-value ratio (or how big the down payment) is.  This applies to both 30 year and 15 year mortgages.

Many borrowers have to take FHA financing because they have issues that preclude them from obtaining conventional financing.  When this is the case, they often ask if they can avoid FHA MI with a larger down payment.  The answer is no.

30 year FHA mortgages will have an annual MI rate of at least 1.30% no matter how much equity is in the property.

An FHA MI chart is below.

 

Term > 15 Years

Base Loan Amt.

LTV

Previous MIPNew MIP
≤ $625,500≤ 95.00%120 bps130 bps
≤ $625,500> 95.00%125 bps135 bps
> $625,500≤ 95.00%145 bps150 bps
> $625,500> 95.00%150 bps155 bps

Term ≤ 15 Years

≤ $625,50078.01% – 90.00%35 bps45 bps
≤ $625,500> 90.00%60 bps70 bps
> $625,50078.01% – 90.00%60 bps70 bps
> $625,500> 90.00%85 bps95 bps

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646