An FHA Mortgage loan includes an Upfront or One-Time Mortgage Insurance
Premium (MIP) which is added to the Base Loan amount to determine the
Final Loan Amount.
The Upfront MIP for all purchases and refinances
(except the FHASecure) is 1.75% regardless of LTV.
Additionally, there is a Monthly Mortgage Insurance Premium of 0.25%,
0.50% or 0.55% included in the PITI. FHA Mortgage Insurance, both Upfront
and Monthly is a requirement on every FHA mortgage loan, regardless of LTV.*
(*The sole exception to this statement
is when the loan is a 15 yr term with LTV of 89.99% or less – in which
case, there is no monthly MIP.)
The maximum Base Loan is determined by County and number of units.
FHA Home loans are available for 1-4 unit, owner occupied properties,
including PUD’s and FHA Approved Condominiums.
FHA Home loans are insured by the Federal Housing Authority, a
division of the Department of Housing and Urban Development. This
Federally insured program exists to extend more opportunities for
affordable home ownership to low to moderate income families, as well as
borrowers who may have “less than perfect” credit histories.