source:
  type: guide
  id: hud-4000-1-ii-i-mortgage-insurance-premiums
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — i. Mortgage
    Insurance Premiums (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — i. Mortgage
    Insurance Premiums (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-i-mortgage-insurance-premiums-full
  canonical_id: hud-4000-1-ii-i-mortgage-insurance-premiums-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — i. Mortgage
    Insurance Premiums (04/29/2024)
  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 — i. Mortgage
      Insurance Premiums (04/29/2024)
    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: 'i. Mortgage Insurance Premiums (04/29/2024) FHA collects a one-time
      IMIP and an annual insurance premium, also referred to as the monthly Mortgage
      Insurance Premium (MIP), which is collected in monthly installments. i. Initial
      Mortgage Insurance Premium (A) Definition Late Charges refer to charges assessed
      if the IMIP payment is received more than twenty Days after the Closing Date.
      (B) Standard The IMIP is the responsibility of the Borrower and must be financed
      or paid in cash by the Borrower. Any amount not paid in cash must be financed.
      Any IMIP amount paid in cash is added to the total cash requirements due at
      closing. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured
      Housing Programs Reverse Mortgages 4. Underwriting the Property Handbook 4000.1
      599 Last Revised: 11/26/2025 Mortgagees may pay a portion or the full amount
      of IMIP on behalf of the Borrower. (1) Initial Mortgage Insurance Premium Payment
      Due Date The Mortgagee must remit the IMIP within 15 Days of the Closing Date
      and as a condition of endorsement. See IMIP Late Charge and Interest for additional
      information. (2) Initial Mortgage Insurance Premium Amount FHA charges an IMIP
      of 2 percent of the MCA. The IMIP must be financed or paid in cash by the Borrower
      or Mortgagee. The Borrower and/or Mortgagee may pay a portion or the full amount
      of the IMIP. Any amount not paid in cash must be financed. Any IMIP amounts
      paid in cash are added to the total cash requirements due at closing. See the
      Initial Mortgage Insurance Premium Amount section in the HECM for Purchase product
      sheet. ii. Annual Mortgage Insurance Premium The annual MIP is payable monthly.
      FHA charges an annual MIP of 0.50 percent on the outstanding mortgage balance.
      The amount of the annual MIP will begin to accrue on the outstanding mortgage
      balance from the Closing Date. 4. Underwriting the Property The Mortgagee must
      underwrite the completed appraisal report to determine if the Property provides
      sufficient collateral for the FHA-insured HECM. The appraisal and Property must
      comply with the requirements in the Appraiser and Property Requirements for
      Title II Forward and Reverse Mortgages. The appraisal must be reported in accordance
      with the Acceptable Reporting Forms and Protocols.'
  judgment: false
