An FHA borrower has a loan amount of $300,000 with an 85% LTV ratio. When can the annual MIP be removed from this loan?
Correct Answer
B) After 11 years regardless of LTV
For FHA loans with LTV of 90% or less at origination, annual MIP can be removed after 11 years regardless of the current LTV ratio. Since this loan has an 85% LTV, it qualifies for MIP removal after 11 years per HUD guidelines.
Why This Is the Correct Answer
For FHA loans with LTV of 90% or less at origination, annual MIP can be removed after 11 years regardless of the current LTV ratio. Since this loan has an 85% LTV, it qualifies for MIP removal after 11 years per HUD guidelines.
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