source:
  type: guide
  id: hud-4000-1-ii-e-mortgage-insurance-premiums
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Mortgage
    Insurance Premiums (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Mortgage
    Insurance Premiums (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-e-mortgage-insurance-premiums-full
  canonical_id: hud-4000-1-ii-e-mortgage-insurance-premiums-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Mortgage
    Insurance Premiums (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — e. Mortgage
      Insurance Premiums (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'e. Mortgage Insurance Premiums (09/14/2015) FHA collects a one-time
      Upfront Mortgage Insurance Premium (UFMIP) and an annual insurance premium,
      also referred to as the periodic or monthly MIP, which is collected in monthly
      installments. i. Upfront Mortgage Insurance Premium (A) Upfront Mortgage Insurance
      Premium Amount Most FHA mortgage insurance programs require the payment of UFMIP,
      which may be financed into the Mortgage. The UFMIP is not considered when calculating
      the area-based Nationwide Mortgage Limits and LTV limits. The UFMIP charged
      for all amortization terms is 175 Basis Points (bps), unless otherwise stated
      in the applicable Programs and Products or in the MIP chart. The UFMIP must
      be entirely financed into the Mortgage or paid entirely in cash. Any UFMIP amounts
      paid in cash are added to the total cash settlement requirements. However, if
      the UFMIP is financed into the Mortgage, the entire amount is to be financed
      except for any amount less than $1.00. The mortgage amount must be rounded down
      to the nearest whole dollar amount, regardless of whether the UFMIP is financed
      or paid in cash. (B) Refund and Credit of Upfront Mortgage Insurance Premium
      The UFMIP is not refundable, except in connection with the refinancing to a
      new FHA-insured Mortgage. See the Refinances Section. ii. Annual (or Periodic)
      Mortgage Insurance Premium The periodic MIP is an annual MIP that is payable
      monthly. The amount of the annual MIP is based on the LTV ratio, Base Loan Amount
      and the term of the Mortgage. Calculation of the MIP The MIP rate and duration
      of the MIP assessment period vary by mortgage term, Base Loan Amount, and LTV
      ratio for the Mortgage, as shown in the MIP chart. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 3. Underwriting the Property
      Handbook 4000.1 181 Last Revised: 11/26/2025 3. Underwriting the Property The
      Mortgagee must underwrite the completed appraisal report to determine if the
      Property provides sufficient collateral for the FHA-insured Mortgage. The appraisal
      and Property must comply with the requirements in Appraiser and Property Requirements
      for Title II Forward and Reverse Mortgages. The appraisal must be reported in
      accordance with Acceptable Reporting Forms and Protocols.'
  judgment: false
