What is the FHA mortgage insurance premium (MIP)?

FHA loans require a 1.75% upfront MIP, which is usually financed into the loan, plus an annual MIP of about 0.55% paid monthly. Unlike PMI, FHA MIP generally lasts for the life of the loan.

What is the minimum down payment for an FHA loan?

The minimum FHA down payment is 3.5% of the purchase price with a credit score of 580 or higher. Borrowers with lower scores typically need 10% down.

FHA Loan Calculator

Includes the 1.75% upfront MIP and 0.55% annual MIP.

FHA Loan Details

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FHA minimum is 3.5%

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How FHA insurance works

FHA loans charge two insurance premiums:

Upfront MIP (1.75%) — paid once, usually added to your loan balance, so the total loan is slightly larger than the home price minus down payment.
Annual MIP (about 0.55%) — paid monthly as part of your payment, and unlike private PMI, it typically lasts for the life of the loan.

FHA Loan FAQ

Who is an FHA loan good for?▶

FHA loans are popular with first-time buyers because of the low 3.5% down payment and more flexible credit requirements. The trade-off is lifetime mortgage insurance.

Can FHA MIP be removed?▶

For most FHA loans made after June 2013 with less than 10% down, MIP stays for the life of the loan. The only way to remove it is to refinance into a conventional loan.