FHA Mortgage Insurance Premium (MIP): 2026 Costs, Chart and How to Remove It
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FHA loans charge two mortgage insurance premiums: an upfront premium of 1.75% of the base loan amount, and an annual premium that is 0.55% a year for most 30-year FHA loans with less than 5% down. If you put down less than 10%, the annual premium lasts for the life of the loan. If you put down 10% or more, it ends after 11 years. Unlike private mortgage insurance on a conventional loan, FHA MIP does not cancel on its own when you reach 78% of your home's value.
Here is the full FHA MIP chart, what it costs on an example loan, how long you pay it, and the ways out.
What is the FHA mortgage insurance premium (MIP)?
MIP is the insurance that lets FHA back loans with small down payments. HUD says an FHA down payment can be as low as 3.5% of the purchase price. Like other mortgage insurance, it protects the lender if the loan is not repaid. It does not protect you.
FHA MIP has two parts:
Upfront MIP (UFMIP). HUD sets it at 1.75% of the base loan amount for forward mortgages (Mortgagee Letter 2017-07). It can be paid in cash at closing or added to the loan amount.
Annual MIP. A yearly rate, paid in monthly installments as part of your mortgage payment.
What is the FHA MIP chart for 2026?
HUD cut annual MIP rates in Mortgagee Letter 2023-05 for loans endorsed on or after March 20, 2023. We found no later HUD letter that changes these rates. The newest one we checked, Mortgagee Letter 2026-11 from October 8, 2026, covers credit score methods and leaves MIP alone.
Loans longer than 15 years (like a 30-year loan):
Base loan amount | Loan-to-value (LTV) | Annual MIP | How long you pay it |
|---|---|---|---|
$726,200 or less | 90% or less | 0.50% | 11 years |
$726,200 or less | Over 90% up to 95% | 0.50% | Life of the loan |
$726,200 or less | Over 95% | 0.55% | Life of the loan |
Over $726,200 | 90% or less | 0.70% | 11 years |
Over $726,200 | Over 90% up to 95% | 0.70% | Life of the loan |
Over $726,200 | Over 95% | 0.75% | Life of the loan |
Loans of 15 years or less:
Base loan amount | LTV | Annual MIP | How long you pay it |
|---|---|---|---|
$726,200 or less | 90% or less | 0.15% | 11 years |
$726,200 or less | Over 90% | 0.40% | Life of the loan |
Over $726,200 | 78% or less | 0.15% | 11 years |
Over $726,200 | Over 78% up to 90% | 0.40% | 11 years |
Over $726,200 | Over 90% | 0.65% | Life of the loan |
A buyer who puts the 3.5% minimum down has an LTV of 96.5%, which falls in the ""over 95%"" row.
How much does FHA mortgage insurance cost per month?
Here is an EXAMPLE on a made-up $350,000 home with a 30-year FHA loan. It uses Freddie Mac's 30-year fixed average of 7.32% for the week of October 22, 2026. Your own rate will differ. Monthly MIP is a first-year estimate, since HUD figures it on your loan balance.
Example | 3.5% down | 10% down |
|---|---|---|
Down payment | $12,250 | $35,000 |
Base loan amount | $337,750 | $315,000 |
Upfront MIP (1.75%, added to the loan) | $5,911 | $5,513 |
Total loan with upfront MIP | $343,661 | $320,513 |
Principal and interest at 7.32% | About $2,361 | About $2,202 |
Annual MIP rate | 0.55% | 0.50% |
Monthly MIP, first year (about) | About $155 | About $131 |
How long you pay annual MIP | Life of the loan | 11 years |
Taxes, homeowners insurance and any HOA dues come on top of these numbers.
The 10% down column pays a little less each month, but the bigger difference is the end date. At 10% down, the annual premium stops after 11 years.
How long do you pay FHA MIP?
HUD set the current rules in Mortgagee Letter 2013-04, for FHA case numbers assigned on or after June 3, 2013:
LTV of 90% or less: annual MIP is paid for 11 years or until the loan ends, whichever comes first.
LTV over 90%: annual MIP is paid until the end of the loan term or for the first 30 years, which on a 30-year loan means the whole loan.
The same letter ended the old automatic cancellation of FHA annual MIP. That is the key difference from a conventional loan.
Can you remove FHA mortgage insurance?
Not by paying down the loan. FHA has no automatic cancellation at 78% for these loans. Your options are:
Put at least 10% down. Then the annual premium ends after 11 years.
Pay off the FHA loan. Because MIP is tied to the FHA-insured loan, it ends when that loan is paid off, for example when you sell or refinance into a different kind of loan. A refinance has its own costs and its own approval, so run the numbers first.
Refinance into a new FHA loan within three years. HUD's homeowner fact sheet says the refund from your old upfront premium may be applied toward the upfront premium on the new FHA loan. HUD also says no refund is due after the third year for loans endorsed on or after December 8, 2004, unless you refinance into a new FHA loan.
For comparison, conventional loans with private mortgage insurance work differently. The CFPB says you can ask to cancel PMI when your balance is scheduled to fall to 80% of the home's original value, and it ends automatically when the balance is scheduled to reach 78%, if your payments are current. Our PMI guide covers that side.
Is FHA mortgage insurance tax deductible in 2026?
It can be. The IRS draft 2026 Publication 936, dated September 30, 2026, says the itemized deduction for qualified mortgage insurance premiums has been reinstated for tax year 2026. The draft says the deduction phases out above $100,000 of adjusted gross income ($50,000 if married filing separately) and is gone above $109,000 ($54,500 if married filing separately). You only benefit if you itemize. For tax year 2025, the IRS said the deduction had expired. Ask a tax professional about your own return.
FHA loan limits and credit scores in 2026
Loan limits: HUD's 2026 FHA limits for a one-unit home run from a floor of $541,287 to a ceiling of $1,249,125, depending on the county (HUD press release 25-145, December 11, 2025).
Credit score: HUD Mortgagee Letter 2026-11 says a score at or above 580 is eligible for maximum financing, while a score between 500 and 579 is limited to a maximum LTV of 90%, which means at least 10% down.
What this means for new-construction buyers
FHA can work on a brand-new home, and MIP works the same way on new construction as on a resale. Two things are worth planning for:
Compare the full cost, not just the rate. A builder rate buydown can lower your interest rate, but it does not change the FHA MIP rate. When you compare an FHA offer with a conventional one, line up the upfront premium, the monthly MIP and how long each lasts.
Think about the 10% line. If you can reach 10% down, the annual premium ends after 11 years instead of lasting the life of the loan.
Our guide to FHA vs conventional loans compares both side by side, and FHA on new construction covers the builder paperwork HUD asks for.
Common Questions
How much is FHA mortgage insurance?
FHA charges an upfront premium of 1.75% of the base loan amount plus an annual premium. On most 30-year FHA loans with less than 5% down, the annual premium is 0.55% a year, under HUD Mortgagee Letter 2023-05.
Does FHA MIP ever go away?
If your loan-to-value was 90% or less at the start, annual MIP ends after 11 years. If it was over 90%, you pay it for the life of the loan unless you pay off the loan by selling or refinancing.
Can FHA MIP be removed at 78% loan-to-value?
No. HUD ended automatic cancellation of FHA annual MIP for case numbers assigned on or after June 3, 2013. The 78% rule applies to private mortgage insurance on conventional loans.
Is the upfront MIP paid in cash at closing?
It can be, or it can be added to the loan amount. It is 1.75% of the base loan amount, so on a \$337,750 base loan it is about \$5,911.
Is FHA mortgage insurance tax deductible in 2026?
The IRS draft 2026 Publication 936 says the mortgage insurance premium deduction is reinstated for tax year 2026 for people who itemize. It phases out above \$100,000 of adjusted gross income.
What are the 2026 FHA loan limits?
For a one-unit home, HUD's 2026 limits run from \$541,287 to \$1,249,125 depending on the county.
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Related reading: How much down payment do you need to buy a house? · Mortgage interest deduction in 2026 · What is PMI?
External sources: HUD Mortgagee Letter 2023-05 · HUD Mortgagee Letter 2017-07 · HUD Mortgagee Letter 2013-04 · HUD Mortgagee Letter 2026-11 · HUD homeowners fact sheet · HUD 2026 FHA loan limits · Freddie Mac PMMS · CFPB on PMI · IRS draft 2026 Publication 936
This is general information, not financial, tax or legal advice. Figures checked October 28, 2026.