The mortgage insurance cancelation rules were last changed on 6/3/2013. Below are the current requirements per FHA
- A FHA loan with less than 10% down will require the monthly mortgage insurance premiums to be paid through the entire loan term. Borrowers will not be eligible to have the mortgage insurance removed no matter how much time passes or what the loan to value is (the rule in the past used to require 78% loan to value and 5 years minimum).
- A FHA loan with 10% or more down will be eligible to have the monthly mortgage insurance premiums removed after the following two conditions have been met: 1-after 11 years have passed with on time payments & 2-when the principal loan balance reaches 78% of the value of the home at the time of purchase.
Annual Arizona FHA Mortgage Insurance Premiums after 1/27/2015
- 15-Year Fixed with down payment more than 10% , the MIP is .45%
- 15-Year Fixed with down payment less than 10% , the MIP is .70%
- 30 and 20 Year Fixed w/ down payment more than 5% , the MIP is .80%
- 30 and 20 Year Fixed w/ down payment less than 5% , the MIP is .85%
Note: Upfront Mortgage Insurance premiums for all FHA transactions increased from 1% to 1.75%
Your “Crash Course” in the Federal Housing Administration and its Financial Programs
The Federal Housing Administration (FHA) was established back in 1934 with a simple goal, to help more Americans purchase new homes. As with any governmental agency, the FHA Mortgage Loan options available and the rules to apply can be very complicated. FHA Home Loans Arizona programs can also be challenging to comprehend.
So let’s take a minute to give you a crash course in FHA Mortgage Programs, and more specifically, the details surrounding Arizona FHA Mortgages.