New FHA Risk Premium

FHA New Risk MI Premiums

The new UFMIP – Up Front Mortgage Insurance Premiums will range from 1.75% of the loan amount for lower risk borrowers to 3% for higher risk borrowers. The Annual Mortgage Insurance Premiums will be range from 0.50% to 0.55%. No borrower who qualifies for a FHA insured mortgage loan will pay more than 3% in UFMIP – Upfront Mortgage Insurance Premiums, and pay 0.55% in the Annual Mortgage Insurance Premium. First time home buyers with HUD approved counseling will still only have to pay 1.75% for the UFMIP.

FHA Single Family Mortgage Insurance
Upfront and Annual Mortgage Insurance Premiums
Loan Terms > 15 Years
All premiums are specified in basis points (0.01%)

FHA will charge an upfront premium in an amount equal to the following percentages of the mortgage:   

• Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 Percent

• Streamline Refinances (all types) = 1.50 Percent

• FHASecure (Delinquent Mortgagors) = 3.00 Percent.  

If a FICO score is available, it must be used to determine the decision FICO score for the application, and the FHA premium to be charged. A “decision FICO score” is determined for each applicant according to the following rule: when three FICO scores are available (one from each credit repository), the median (middle) score is used; when only two scores are available, then the lesser of the two is chosen; when only one score is available, then the middle is used.

For Multiple Borrowers – if more than one individual is applying for the same FHA mortgage, the FHA lender must determine the decision FICO score for each individual borrower, and then select the lower (or lowest if more than two borrowers). That “decision FICO score” is then used to determine the appropriate FHA insurance premium in conjunction with the loan to value ratio.

For Multiple Borrowers/One Without a FICO Score – the borrower representing the greatest risk to the Department will determine the premium charged. For example, if the decision FICO score for one borrower is between 559-500, and the other borrower is in the non-traditional (No Score) credit category, the decision FICO score between 559-500 is used to determine the FHA premium. However, if the decision FICO score for one borrower is between 639-600, and the other borrower is in the non-traditional credit category, the non-traditional credit category is used to determine the FHA premium. FHA mortgage rates will be subject to your FICO.

Annual Premium An annual premium, shown in half of percent below, to be paid on a monthly basis, will also be charged based on the initial LTV ratio and term of the mortgage (except for FHASecure mortgages)

Purchase Money Mortgages, Full-Qualifying Refinances, and Streamline Refinances:  

LTV	Annual for Loans >15 Years)	LTV	Annual for Loans < 15 Years
< 95	50	< 90	-None-
> 95	55	> 90	25

 FHASecure (delinquent mortgagors):  

LTV	Annual (all loan terms)
< 95	50
> 95	55