Skip to content
ClosingCodeClosingCode
ENES

FHA loans · HUD Handbook 4000.1, Appendix 1.0FHA mortgage insurance premium (MIP): the upfront 1.75% and the annual rates

Almost every FHA loan carries two mortgage insurance premiums. The upfront premium (UFMIP) is 175 basis points – 1.75% – of the base loan amount. The annual premium depends on the term, the base loan amount and the loan-to-value. For loans longer than 15 years with a base amount up to $726,200, it is 0.50% when LTV is 90% or less (paid for 11 years) or above 90% up to 95% (paid for the life of the loan), and 0.55% above 95% LTV (life of the loan). Above $726,200 the rates are 0.70% and 0.75%. For terms of 15 years or less, the annual premium is 0.15% at 90% LTV or less (11 years) and 0.40% above that (life of the loan) for base amounts up to $726,200. So a typical 3.5%-down FHA purchase pays 0.55% a year for as long as the loan lasts.

Annual MIP – terms longer than 15 years

  1. ≤ $726,200, LTV ≤ 90%

    0.50% · 11 years.

  2. ≤ $726,200, LTV 90–95%

    0.50% · life of the loan.

  3. ≤ $726,200, LTV > 95%

    0.55% · life of the loan.

  4. > $726,200, LTV ≤ 90%

    0.70% · 11 years.

  5. > $726,200, LTV 90–95%

    0.70% · life of the loan.

  6. > $726,200, LTV > 95%

    0.75% · life of the loan.

Annual MIP – terms of 15 years or less

  1. ≤ $726,200, LTV ≤ 90%

    0.15% · 11 years.

  2. ≤ $726,200, LTV > 90%

    0.40% · life of the loan.

  3. > $726,200, LTV ≤ 78%

    0.15% · 11 years.

  4. > $726,200, LTV 78–90%

    0.40% · 11 years.

  5. > $726,200, LTV > 90%

    0.65% · life of the loan.

Example: $300,000 purchase, 3.5% down, 30 years

  1. Base loan

    $289,500

    96.5% of the price.

  2. Upfront MIP

    $5,066.25

    1.75% of the base loan – usually added to the loan.

  3. Annual MIP

    0.55%

    About $1,590 a year in the first year, paid monthly, for the life of the loan; the lender calculates the exact amount.

Questions buyers ask

How much is the FHA upfront mortgage insurance premium?

1.75% (175 basis points) of the base loan amount for almost all FHA mortgages (HUD Handbook 4000.1, Appendix 1.0).

How long do you pay FHA mortgage insurance?

11 years if the loan-to-value is 90% or less at the start; above 90%, for the life of the loan (Appendix 1.0).

Can the seller pay the FHA upfront premium?

Seller and other interested-party payments of the UFMIP count within the 6% interested party contribution limit (HUD Handbook 4000.1).

Related guides

Mark the deal as FHA in ClosingCode – the FHA steps and papers join the checklist, and the Closing Disclosure sits with the deal for the final numbers.

Start free trial

Source: HUD Handbook 4000.1, Appendix 1.0 – Mortgage Insurance Premiums (03/20/2023), handbook last revised August 12, 2026 (hud.gov, read October 25, 2026).

General information about FHA-insured loans, not financial advice. The lender's Loan Estimate shows the actual premiums. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.