FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > A. Title II Insured Housing Programs Forward Mortgages > 2. Allowable Mortgage Parameters — e. Mortgage Insurance Premiums
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FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Mortgage Insurance Premiums (09/14/2015)
Effective 2015-09-14 · publisher's stamp for this provision
e. Mortgage Insurance Premiums (09/14/2015)
FHA collects a one-time Upfront Mortgage Insurance Premium (UFMIP) and an annual
insurance premium, also referred to as the periodic or monthly MIP, which is collected in
monthly installments.
i. Upfront Mortgage Insurance Premium
(A) Upfront Mortgage Insurance Premium Amount
Most FHA mortgage insurance programs require the payment of UFMIP, which may
be financed into the Mortgage. The UFMIP is not considered when calculating the
area-based Nationwide Mortgage Limits and LTV limits.
The UFMIP charged for all amortization terms is 175 Basis Points (bps), unless
otherwise stated in the applicable Programs and Products or in the MIP chart.
The UFMIP must be entirely financed into the Mortgage or paid entirely in cash. Any
UFMIP amounts paid in cash are added to the total cash settlement requirements.
However, if the UFMIP is financed into the Mortgage, the entire amount is to be
financed except for any amount less than $1.
The mortgage amount must be rounded down to the nearest whole dollar amount,
regardless of whether the UFMIP is financed or paid in cash.
(B) Refund and Credit of Upfront Mortgage Insurance Premium
The UFMIP is not refundable, except in connection with the refinancing to a new
FHA-insured Mortgage. See the Refinances Section.
ii. Annual (or Periodic) Mortgage Insurance Premium
The periodic MIP is an annual MIP that is payable monthly. The amount of the annual
MIP is based on the LTV ratio, Base Loan Amount and the term of the Mortgage.
Calculation of the MIP
The MIP rate and duration of the MIP assessment period vary by mortgage term, Base
Loan Amount, and LTV ratio for the Mortgage, as shown in the MIP chart.
3. Underwriting the Property
The Mortgagee must underwrite the completed appraisal report to determine if the Property
provides sufficient collateral for the FHA-insured Mortgage. The appraisal and Property must
comply with the requirements in Appraiser and Property Requirements for Title II Forward and
Reverse Mortgages. The appraisal must be reported in accordance with Acceptable Reporting
Forms and Protocols.
Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09
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