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UpdatedAugust 22, 2026ReviewedAugust 23, 2026Where our FHA figures come from
Umbrella sheltering a model house on top of mortgage insurance paperwork
FHA MIP Calculator

Exactly what FHA mortgage insurance costs you

Upfront MIP, annual MIP and the monthly dollar amount — using HUD's published Mortgagee Letter 2023-05 rate tables, not estimates.

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3.5%
Min. down payment
580
Min. FICO score
$1,249,125
2026 high-cost ceiling
Quick answer

How much is FHA mortgage insurance?

FHA mortgage insurance has two parts: an upfront premium of 1.75% of the base loan amount, usually financed into the loan, and an annual premium of about 0.55% of the balance, paid monthly. With less than 10% down the annual premium lasts the life of the loan; with 10% or more down it ends after 11 years.

What this means for your mortgage

MIP is a real, permanent part of most FHA payments, so price it in now rather than assuming it disappears at 20% equity.

Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 23, 2026 against HUD Handbook 4000.1

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TL;DR

FHA MIP: key takeaways

  • Upfront MIP: 1.75% of base loan, financeable
  • Annual MIP: about 0.55% for most 30-year loans
  • Under 10% down: MIP for the life of the loan
  • 10% or more down: MIP drops off after 11 years
  • Refinancing to conventional at 20% equity removes MIP entirely
  • Streamline refinances may earn a partial upfront MIP refund

Loan details

Monthly mortgage insurance
$191.26/mo
Base loan amount
$410,125
Loan-to-value (LTV)
96.50%
Upfront MIP (1.75%)
$7,177
Total financed loan
$417,302
Annual MIP rate
0.55%
Annual MIP cost (year 1)
$2,295
MIP duration
Life of the loan

Rates per HUD Mortgagee Letter 2023-05. Annual MIP is recalculated each year on the average outstanding balance, so the monthly amount declines slightly over time. Estimates only; your actual premium is set at endorsement.

See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

How FHA mortgage insurance works

Every FHA-insured forward mortgage carries two separate mortgage insurance premiums. They fund the Mutual Mortgage Insurance Fund, which is what allows FHA lenders to approve 3.5% down payments and credit scores as low as 580.

Upfront MIP (UFMIP)

1.75% of the base loan amount, charged once. Most borrowers finance it into the loan rather than paying cash, which is why an FHA loan balance is usually slightly higher than the purchase price minus the down payment.

Annual MIP

Charged monthly as 1/12 of the annual rate. The rate depends on three things: base loan amount (above or below $726,200), loan-to-value, and loan term.

TermBase loanLTVAnnual MIP
> 15 yrs≤ $726,200> 95%0.55%
> 15 yrs≤ $726,200≤ 95%0.50%
> 15 yrs> $726,200> 95%0.75%
> 15 yrs> $726,200≤ 95%0.70%
≤ 15 yrs≤ $726,200> 90%0.40%
≤ 15 yrs≤ $726,20078.01–90%0.15%
≤ 15 yrsAny≤ 78%None

When does it end?

For loans endorsed on or after June 3, 2013, annual MIP runs for the full loan term when the down payment is under 10%, and for 11 years when the down payment is 10% or more. Paying the loan down does not cancel it — refinancing into a conventional loan once you have 20% equity is the usual way out.

FHA MIP questions

What is the FHA upfront mortgage insurance premium in 2026?

The FHA upfront mortgage insurance premium (UFMIP) is 1.75% of the base loan amount on virtually all forward FHA mortgages. It can be paid in cash at closing or financed into the loan.

What is the FHA annual MIP rate?

Under HUD Mortgagee Letter 2023-05, the annual MIP on a 30-year FHA loan is 0.55% for base loan amounts of $726,200 or less with LTV above 95%, and 0.50% at 95% LTV or below. Loans above $726,200 pay 0.75% and 0.70% respectively. Terms of 15 years or less use a lower schedule that starts at 0.15%.

When does FHA mortgage insurance fall off?

For loans endorsed after June 3, 2013 with a down payment under 10%, annual MIP lasts for the life of the loan. With 10% or more down, MIP is cancelled after 11 years. Loans with a term of 15 years or less and LTV of 78% or below pay no annual MIP.

FHA Loan Rates for FHA Mortgage Insurance Scenarios

Everything on this page about FHA Mortgage Insurance Scenarios comes back to one question: what does the loan actually price at? FHA pricing is set per scenario, so your credit profile, base loan amount, loan-to-value, property type, term and lock period all move the number you actually get. Run your scenario below and compare real FHA options side by side: note rate, provider APR, points or lender credit, and the payment that goes with each one.

Snapshot pricing unavailable

No current pricing snapshot — we never show sample rate figures.

Sample scenario: Florida primary residence, 30-year fixed FHA. Pricing is refreshed once every business day and can change between refreshes.

Loading the most recent FHA pricing snapshot…

Snapshot pricing is an example for the sample scenario described above. It is not a quote, an application, a pre-approval, a rate lock, an offer of credit or a commitment to lend, and it is not personalized to you.

APR is supplied by our pricing provider for the exact scenario priced. Other lender or third-party charges listed separately may not be reflected, and the final APR can change. Your final mortgage disclosures control.

A lender credit reduces eligible closing costs only. It cannot exceed those costs and is never cash back to the borrower.

Get my own FHA pricing

The three cards above are examples from the latest daily snapshot. Enter your own purchase price, down payment, credit score and location to see every eligible FHA option for your scenario, priced right now.

How this calculator works

FHA MIP calculator: methodology and assumptions

Upfront MIP is 1.75% of the base loan amount. Annual MIP is the applicable factor applied to the average outstanding balance for the year, then divided by 12 for the monthly figure.

Assumptions used

  • • Annual MIP factors from HUD Mortgagee Letter 2023-05
  • • Duration of 11 years at 10% or more down, otherwise the full loan term
  • • Upfront MIP financed rather than paid in cash
  • • One-unit owner-occupied purchase or refinance
  • • Balance amortized on schedule with no extra payments

Limitations — what it does not include

  • • Refunds of upfront MIP on an early streamline refinance
  • • Lender pricing, discount points and origination charges
  • • Any conventional PMI comparison
  • • Rate or program changes HUD publishes after the date shown

Data year 2026. Program figures last checked against their source on 2026-01-01. Sources: HUD Mortgagee Letter 2023-05. Results are estimates for planning only — not a quote, rate lock, approval, or commitment to lend. Your binding numbers appear on the Loan Estimate and Closing Disclosure.

Ready to see what you qualify for?

Talk with a licensed FHA broker about your scenario. Licensed in Florida and Colorado.

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Quick answers

How do I get rid of FHA mortgage insurance?
Refinance into a conventional loan once you have 20% equity — that's the standard exit for most FHA borrowers.
Is upfront MIP refundable?
Partially, on a declining schedule, if you FHA-to-FHA refinance within three years of closing.
Does MIP change with credit score?
No. Unlike conventional PMI, FHA MIP is the same rate regardless of your credit score.
What is upfront MIP?
A one-time premium of 1.75% of the base loan amount that most borrowers finance into the loan.
What is annual MIP?
An ongoing premium, commonly 0.55% for standard 30-year loans with less than 5% down, collected monthly against the loan balance.
When does MIP stop?
After 11 years with 10% or more down on a 30-year loan; otherwise it generally runs for the life of the loan.
Does a 15-year term change MIP?
Yes. Shorter terms have their own annual MIP schedule, generally lower than the 30-year rates.
Is MIP based on the original or current balance?
Annual MIP is calculated on the outstanding balance, so the dollar amount declines slowly as you pay down.
Can I avoid financing upfront MIP?
Yes, you may pay it at closing instead, which lowers the loan amount and total interest.
Does MIP apply to a streamline refinance?
Yes, a new FHA loan carries new MIP, though a partial upfront refund may apply within three years.
Where do these MIP rates come from?
From HUD's published mortgage insurance premium schedule, tracked in this site's source registry with a verified date.
Included with your FHA estimate

Get your FHA Pre-Approval Summary.

Complete the short form and we send back a full FHA breakdown: your county loan limit, the minimum FHA down payment, financed upfront MIP, monthly mortgage insurance, and an estimated payment — plus whether down payment assistance can cover your cash to close.

  • Maximum FHA loan amount for your county
  • Minimum FHA down payment and cash-to-close estimate
  • Upfront and annual MIP included
  • Estimated monthly payment with taxes and insurance
Get my FHA estimate

Takes about 3 minutes · No obligation · Summary emailed and shown on screen

Illustration only, generated from the information you enter. Not a Loan Estimate, pre-qualification, commitment to lend, or approval. Subject to appraisal, credit and income review, FHA guidelines, and final lender approval. Equal Housing Opportunity.

FHA Estimate Summary
Purchase price
$385,000
Down payment (3.5%)
$13,475
Base loan amount
$371,525
Financed UFMIP (1.75%)
$6,502
Est. monthly payment
Shown in your summary

Sample figures for illustration only — not a quote, rate lock, offer of credit or commitment to lend. Simply Approved Mortgages · NMLS #2620881 · Equal Housing Opportunity

Weighing it up

Pros and cons of FHA financing

The trade-offs below are specific to FHA financing. Reviewed August 23, 2026 against HUD Handbook 4000.1 and the current HUD county loan limit file.

What works in your favor

  • 3.5% down from a 580 FICO, with 100% of the down payment giftable.
  • Seller contributions of up to 6% of the sale price toward closing costs.
  • No income caps, and higher DTI is possible with documented compensating factors.

What to plan around

  • Annual mortgage insurance for the life of the loan at 3.5% down.
  • County loan limits cap the financed amount, not the purchase price.
  • HUD minimum property standards apply at appraisal.
Worked example

The FHA numbers behind this page

A $425,000 example shows the cash and loan structure FHA produces before pricing is added.

The FHA numbers behind this page
Purchase price$425,000
FHA down payment at 3.5%$14,875
Base loan amount$410,125
Upfront MIP at 1.75%, financed$7,177
Conventional 20% down for comparison$85,000

Illustration only — not a quote, rate lock, offer or commitment to lend. Subject to lender underwriting and approval.

Document checklist

What documents you need for FHA financing

This is the set an FHA underwriter typically asks for. Having it ready before you write an offer is the single biggest difference between a two-week and a six-week file.

Identity and residency

  • Government-issued photo ID and Social Security number
  • Two-year residence history with landlord contact where you rented

Assets

  • Two months of statements for every account used for down payment or reserves
  • A signed gift letter plus the donor's source of funds for any gifted money
  • Retirement statements when reserves are drawn from those accounts

Property and credit

  • Fully executed purchase contract with all addenda
  • Homeowners insurance quote, plus flood coverage where required
  • Written explanation for credit events, plus bankruptcy or foreclosure paperwork if applicable
Income documentation

Self-employed vs. W-2 employed: what it means for your FHA loan

Income documentation is where most FHA files slow down, and it depends on how you are paid. FHA does not apply a different credit score, down payment or county limit to self-employed borrowers — it applies a different documentation standard.

FHA documentation differences between W-2 employed and self-employed borrowers
ItemW-2 employedSelf-employed
History requiredTwo-year employment history, with gaps explained. A job change inside the same field is usually fine.Generally two years of self-employment. A shorter history can sometimes be considered when there is documented prior experience in the same line of work.
How income is calculatedBase pay from pay stubs and W-2s. Bonus, overtime and commission generally need a two-year history to be averaged in.Net income from tax returns, averaged and adjusted for allowable add-backs such as depreciation. Write-offs that reduce taxable income also reduce qualifying income.
Documents that open the file30 days of pay stubs, two years of W-2s, and a verification of employment.Two years of personal and business returns, year-to-date P&L and balance sheet, and evidence the business is still operating.
Verification at closingThe employer is re-verified shortly before closing; do not change jobs mid-process without telling your loan officer.Continued existence of the business is re-verified close to closing, typically through a third-party or licensing check.
Most common delayUnexplained gaps, a new job with variable pay, or a VOE the employer never returns.A declining year over year, or a large deduction that removes the very income needed to qualify.
What we suggestGet the VOE moving on day one — it is the item most often outstanding at the end.Have your accountant produce the year-to-date P&L before you shop, so qualifying income is known before you write an offer.

If you are W-2 employed

  • Pay stubs covering the most recent 30 days
  • W-2 forms for the last two years
  • A verification of employment; HUD Handbook 4000.1 Update 18 tightened the written and electronic VOE rules, so expect the employer record to be verified directly
  • Documentation of bonus, overtime or commission income if you want it counted

If you are self-employed

  • Two years of personal federal tax returns, all schedules
  • Two years of business returns for a partnership, S-corp or C-corp, plus K-1s
  • A year-to-date profit and loss statement and balance sheet
  • Business license, CPA letter or equivalent evidence the business is active

General FHA documentation guidance per HUD Handbook 4000.1, including Update 18 changes to written and electronic verification of employment. Requirements vary by borrower, property, lender and program, and all loans are subject to lender underwriting and approval. Sources: HUD Handbook 4000.1

Simply Approved Mortgages Expert Insight
Mortgage insurance commentary · Last reviewed August 23, 2026

Plan for MIP duration, not just the monthly amount

The annual MIP factor matters, but the term matters more. With 3.5% down, FHA mortgage insurance stays on the loan for its life, and the only way off is a refinance out of FHA. We model that exit up front — what equity and credit profile a borrower would need to refinance later — so MIP is a planned cost rather than a permanent surprise.

Our recommendation

Know both your MIP factor and how many years you expect to pay it.

Simply Approved Mortgages · licensed mortgage broker · NMLS #2620881 · Equal Housing Opportunity
Ask Simply AI

Ask SAM anything about FHA loans in the United States

SAM is the Simply Approved Mortgages AI assistant, grounded in HUD Handbook 4000.1 and the 2026 HUD county limit file. It answers general FHA questions instantly. A licensed loan officer reviews every scenario before any terms are confirmed.

Hi — I'm SAM. Ask me about FHA loan limits, credit, mortgage insurance, down payment assistance or what an underwriter will need from you. General education only: I don't quote rates, and nothing I say is an offer or commitment to lend.

General information only — not advice, a quote, or an offer of credit.

Popular on this page

Talk to a licensed loan officer 877-813-7219

Ask Simply AI provides general educational information about FHA loan programs. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.

Where to go next

Continue with the FHA topic that matches where you are, or talk to a licensed loan officer about your own numbers.

How FHA loans work

What FHA insurance is and who it fits.

FHA requirements

Credit, income, DTI and property rules.

FHA credit score rules

580 vs 500–579 and what they change.

Down payment & assistance

3.5% minimum, gift funds and DPA options.

Mortgage insurance (MIP)

Upfront and annual MIP, and how long it lasts.

FHA loan limits

County-by-county HUD maximums.

FHA closing costs

What you pay and what a seller can cover.

FHA loan programs

203(b), 203(k), streamline, cash-out and more.

FHA calculators

Payment, affordability, MIP and break-even tools.

First-time buyer guide

Step-by-step from budget to closing.

Start My Approval Contact a licensed loan officer Submitting a request is not an application, approval or commitment to lend.
Down Payment Assistance

The FHA DPA Program

Short on cash to close? Ask about the FHA DPA, offered through Simply Approved Mortgages: 2.5%, 3.5%, or 5% of your loan amount toward your down payment and closing costs, structured as a 10-year repayable second lien at your first-mortgage rate + 2%. FICO 580+, primary residence only — it's an option on every loan program on this site.

How it works

Three tiers. Real money toward your home.

  • 2.5% / 3.5% / 5% of the lesser of purchase price or appraised value
  • Pairs with FHA, Conventional, VA, and USDA first mortgages
  • 10-year repayable second lien — no silent forgivable strings
  • Available to FICO 580+ primary-residence buyers
Full DPA program details
Not available in: New York, Washington, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. All loans subject to underwriting approval and program guidelines.
Amount calculator & eligibility checker

See how much assistance you may qualify for

Enter a purchase price, pick an assistance tier, and confirm property and residency. Results are illustrative — not a quote or commitment.

Simply Approved Mortgages DPA

DPA amount calculator & eligibility checker

Estimate 3.5% assistance on the lesser of price or appraisal, layered over a 30-year fixed FHA first mortgage.

Estimated DPA
$14,000
3.5% of $400,000
2nd-lien P&I
$174
10-yr · 8.500%

Amount calculator

Assistance tier
Lesser of price or appraisal
$400,000
DPA at 3.5%
$14,000
2nd-lien term
10-year fixed, repayable
2nd-lien rate
8.500%
Monthly P&I
$174/mo

Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear only on your Loan Estimate and Closing Disclosure.

Eligibility checker

Documentable qualifying income?

Willing to complete homebuyer education before closing?

Property in NY, WA, USVI, Guam, MP, or AS?

Answer each question above to see your preliminary result.

See Today's Rates

Figures are illustrations based on the values you entered — not an offer, rate lock, or commitment to lend. Emailing your scenario sends it to a licensed loan officer in Florida or Colorado.

Preliminary self-check only — no credit pulled. Not a quote, lock, offer, or commitment to lend. Simply Approved Mortgages is not affiliated with HUD, FHA, VA, USDA, FHFA, or any government agency. Equal Housing Opportunity. NMLS# 2620881.

Our pricing philosophy

Transparency. Simplicity. Consumer Choice.

At Simply Approved Mortgages, we believe borrowers deserve clear information, professional guidance, and access to competitive mortgage solutions.

Our company is built around a straightforward philosophy: provide transparent mortgage guidance, maintain a consistent compensation structure on most transactions, and help borrowers make informed financing decisions based on their individual needs and goals.

For many mortgage transactions, Simply Approved Mortgages typically operates using a lender-paid compensation structure of approximately 1.50%. Actual compensation may vary based on lender requirements, loan program, state regulations, loan amount, and other transaction-specific factors.

We believe transparency helps consumers better understand the mortgage process and make informed decisions when comparing financing options.

Our promise

Mortgage financing should be understandable, transparent, and focused on helping consumers make informed decisions.

Our goal isn't to maximize compensation per transaction. Our goal is to build lifelong client relationships through transparency, service, and competitive mortgage solutions.

Why compensation transparency matters

Understanding all aspects of the financing process

Many borrowers spend significant time comparing interest rates, but may be less familiar with how mortgage companies and loan originators are compensated.

Compensation structures can vary among lenders, mortgage brokers, banks, credit unions, and other mortgage providers. Compensation is only one component of a mortgage transaction and should be evaluated alongside interest rates, APR, lender fees, discount points, closing costs, loan features, and overall loan suitability.

At Simply Approved Mortgages, we believe consumers benefit from understanding all aspects of the financing process before making a decision.

Interactive illustration

See how compensation scales by loan amount

Move the slider to compare a hypothetical 1.50% Simply Approved Mortgages compensation structure with a hypothetical 2.75% used by some other lending options. For educational purposes only.

$400,000
$50,000$2,000,000
Typical market comp at 2.75%$11,000
Simply Approved Mortgages at 1.50%$6,000
Potential closing cost difference
Hypothetical impact on lender compensation only
~$5,000

For illustration only. Figures are hypothetical and not a quote, offer, rate lock, or guarantee of savings. Lender compensation is one component of closing costs; actual loan terms, interest rates, fees, APR, and total costs vary by program, loan amount, credit qualifications, property, occupancy, state, and market conditions.

Illustrative compensation comparison

Comparing a hypothetical 1.50% to a hypothetical 2.75%

The example below compares a hypothetical 1.50% compensation structure used by Simply Approved Mortgages to a hypothetical 2.75% structure used by some other lending options, solely for educational purposes.

Loan AmountSimply Approved Mortgages (1.50%)Other lending options (2.75%)Difference
$250,000$3,750$6,875$3,125
$350,000$5,250$9,625$4,375
$500,000$7,500$13,750$6,250
$750,000$11,250$20,625$9,375
$1,000,000$15,000$27,500$12,500

These examples are illustrative only and are intended to demonstrate how different compensation percentages may produce different compensation amounts based on loan size.

These examples do not represent borrower fees, interest rates, APR, closing costs, loan terms, pricing, or savings, and should not be interpreted as a guarantee that any borrower will receive lower costs or better loan terms.

Our commitment to borrowers

Our goal is to provide

  • Professional mortgage guidance
  • Transparent communication throughout the loan process
  • Access to a broad range of mortgage programs
  • Competitive financing options based on borrower qualifications
  • A streamlined application and approval experience
  • Support for homebuyers, homeowners, and real estate investors
A team-focused approach

Support for every type of borrower

Whether you're purchasing a home, refinancing an existing mortgage, consolidating debt, or financing an investment property, our team is committed to helping you evaluate available options and make informed decisions.

Compare more than just the interest rate

When evaluating mortgage options, borrowers should consider the complete financing package

  • •Interest Rate
  • •Annual Percentage Rate (APR)
  • •Lender Fees
  • •Discount Points
  • •Closing Costs
  • •Loan Features and Flexibility
  • •Prepayment Terms
  • •Product Eligibility Requirements
  • •Customer Service and Support

The most appropriate mortgage solution depends on each borrower's individual financial circumstances, objectives, qualifications, and preferences.

Important Disclosure: Simply Approved Mortgages LLC typically utilizes a lender-paid compensation structure of approximately 1.50% on many mortgage transactions; however, compensation may vary based on lender requirements, loan program, state law, loan amount, borrower qualifications, and other transaction-specific factors. Compensation is only one component of mortgage pricing and does not, by itself, determine interest rates, APR, lender fees, closing costs, loan terms, or overall borrower costs. The information provided on this page is for general educational and informational purposes only and should not be construed as mortgage advice, a commitment to lend, an offer to extend credit, a rate quote, a loan approval, or a guarantee of savings. All mortgage loans are subject to credit approval, underwriting requirements, property approval, and program eligibility guidelines. Borrowers should carefully review all disclosures, including the Loan Estimate and Closing Disclosure, before proceeding with any mortgage transaction. Simply Approved Mortgages LLC • NMLS #2620881 • Equal Housing Opportunity.

Ready when you are

Get pre-qualified in minutes — no obligation.

Talk to a licensed Simply Approved Mortgages loan officer. We'll review your goals, walk through FHA, Conventional, VA, USDA, and DPA options, and give you straight answers — same day.

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Simply Approved Mortgages • NMLS #2620881 • Licensed in Colorado and Florida

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