Does FHA loan require MIP with 20 percent down?

Question

Do FHA loans still require you to pay a mortgage insurance premium if you put 20 percent down?

Douglas Chasse · Answer

@Scott Hollister I’m plan on house hacking and fha is the only loan I know of that counts market rents into how much you can qualify for. I probably should have just went 25% down conventional . I just wanted to try and get into the house for as little as possible . Hopefully it all works and I can refi sooner than later .

Everett J. · Answer

If you are putting down 20%, then the MIP ends at year 11, unless you sell or refi.

Scott Hollister · Answer

@Douglas Chasse wouldn’t be an fha loan with 20%. Go with the 3 or 5% conventional, paying MI which is cheaper and comes off once you hit 78% ltv. And PMI is on for the life of the Loan now, so you would have to sell or refi to get it off. And the guidelines are  always changing so stay in touch with a good lender. For instance you have to do 15% down on conventional if you plan on house hacking a multi, or you are stuck with Fha for the purchase. Which is still worth it if the deal makes sense.

Caroline Gerardo · Answer

Conventional loan with 610 FICO? @Douglas Chasse

Wayne Brooks · Answer

11 years.

Kristen L Garner · Answer

Yes, but you can always refinance to eliminate.  If you have 20% to put down you may want to run the numbers on a conventional loan vs. an FHA loan and see which is better for your situation. Feel free to reach out if you want me to run numbers for you! -Kristen

Caroline Gerardo · Answer

Yes. 1.75 until you refinance or sell

Does FHA loan require MIP with 20 percent down?

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