An FHA loan requires both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium. When can the annual MIP typically be cancelled on an FHA loan originated after June 2013?
Correct Answer
A) For most FHA loans with less than 10 percent down, the annual MIP remains for the life of the loan
For FHA loans originated after June 3, 2013, with a down payment of less than 10 percent, the annual MIP remains for the life of the loan. Borrowers who put down 10 percent or more may have MIP removed after 11 years.
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