FHA hub
Mortgage insurance (MIP)
The cost that pays for the government's guarantee.
Two parts
FHA mortgage insurance has an upfront part, paid once at closing (it can be added to the loan), and a yearly part, paid in monthly pieces with your mortgage payment.
What it does for you
It is the reason a lender can say yes to a smaller down payment. It does not protect you. It protects the lender.
What to ask
Ask for the total monthly payment with the insurance included, and ask how long the monthly part lasts for your loan.
What this rests on
Amounts and limits change and differ by lender and by county. Ask a lender, and read the official page. Read the official page.
More FHA topics
- How an FHA loan worksA regular loan from a regular lender, with a government guarantee behind it.
- Down payment and creditThe two things most buyers ask about first.
- Loan limitsFHA caps the size of a loan. The cap depends on the county.
- The home has to pass tooFHA looks at the house, not only at the buyer.
- Steps from search to keysThe order most FHA buyers follow.
Educational only. AskResi is not a lender.