FHA loans require mortgage insurance to protect lenders against some or most of the losses that result from defaults on home mortgages.

FHA Mortgage Insurance

HUD's Required Lender Protection

FHA insured mortgages require mortgage insurance. Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages and it's required primarily for borrowers making a down payment of less than 20%.

The mortgage insurance charged is .5% per year of the loan amount and is charged to the homeowner each month. In addition, FHA charges an upfront mortgage insurance premium of 1.5%.

FHA's monthly mortgage insurance payments will be automatically terminated when these conditions occur:

For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78%, provided the mortgagor has paid the annual premium for at least 5 years.
For mortgages with terms 15 years and less and with loan to value ratios 90% and greater, then annual premiums will be canceled when the Loan to Value ratio reaches 78%, regardless of the amount of time the mortgagor has paid the premiums.
Mortgages with terms 15 years and less and with loan to value ratios of 89.99% and less will not be charged annual mortgage insurance premiums.

:: What are the FHA Loan Limits?

First-time homebuyers considering an FHA home loan have plenty of questions, including one of the all-time most popular early inquiries: “How much can I borrow?” If you have done some Internet research on FHA loan limits in the past, check again—some reports are now out of date because of recent changes to the rules for FHA lending limits.

:: Mortgage Insurance Requirements for FHA Loans

FHA-insured mortgages and mortgage insurance requirements can be confusing, but the facts are simple. FHA home loans aren’t any more difficult to understand than a conventional loan. You just need to learn the lending vocabulary.

:: FHA Refinance Questions You'll Need to Answer

When you decide to apply for an FHA Refinance loan, there are several questions you’ll need to answer to set the approval process in motion. Some questions are about planning issues, others are directly related to whether or not an FHA Refinance loan is for you.

ADDITIONAL ARTICLES

FHA Sanctions Brought Against 120 Lenders

The 2009 Tax Break and Your FHA Loan Downpayment

2009 Tax Credit and FHA Loan Down Payments Update

How Does RESPA Affect My FHA Loan?

Are You Entitled to a Refund From the FHA?

FHA Energy Efficient Mortgages

FHA Home Loans and Property Taxes

Is There a Fee for Prepaying My FHA Loan?

What is a Non-Purchasing Spouse?

Can Self-Employed Individuals Qualify for an FHA Home Loan?

The 2009 First-Time Homebuyer's Tax Credit

$8,000 Tax Credit for First-Time FHA Loan Homebuyers

Reasons to Consider an FHA Home Loan

FHA Streamline Loans, 'Cash Back' and Closing Costs

FHA Loan Rates

Refinance Averages
for 11/20/2009

15 Year Fixed

No Points
Low Interest
Best APR

30 Year Fixed

No Points
Low Interest
Best APR

FREE CREDIT REPORT

Do you know what's on your credit report?

FREE credit report and score with
7 day trial!

FHALoans.com is a private company specializing in FHA financing and is not a government agency.

FEATURED SITES:

Helping you make the best financial choices, build wealth, and save money during and after your military service.

-- Military Insurance
-- Military Pay
-- GI Bill Education
-- Military Finance

Offering VA loan products that meet the home financing needs of active duty military and veterans across the country.

-- VA Loan Limits
-- VA Loan Refinance
-- VA Loan Guidelines