FHA – Annual MIP Reduction

The Federal Housing Administration (FHA) has announced, effective for case numbers endorsed on and after 03/20/2023, a 30 basis point reduction in the annual premium charged to mortgage borrowers. 

The cut, widely anticipated by the industry, will result in mortgage insurance premiums (MIP) of 55 bps for most borrowers, down from 85. The reduction also amends the Base Loan amount threshold used to establish MIP rates to the national conforming loan limit of $726,200, which increased from $625,500. Please refer to the following for the 03/20/2023 Annual Mortgage Insurance Premium MIP reduction:

  • FHA Loans with Terms > 15 Years
    • Base loan Amount and LTV:
      • Less than or equal to $726,200
        • ≤ 90.00% (50 bps) 11 years
        • > 90.00% but ≤ 95.00% (50 bps) Mortgage term
        • > 95.00% (55 bps) Mortgage term
      • Greater than $726,200
        • ≤ 90.00% (70 bps) 11 years
        • > 90.00% but ≤ 95.00% (70 bps) Mortgage term
        • > 95.00% (75 bps) Mortgage term
  • FHA Loans with Terms < 15 Years
    • Base loan Amount and LTV:
      • Less than or equal to $726,200
        • ≤ 90.00% (15 bps) 11 years
        • > 90.00% (40 bps) Mortgage term
      • Greater than $726,200
        • ≤ 78.00% (15 bps) 11 years
        • > 78.00% but ≤ 90.00% (40 bps) 11 years
        • > 90.00% (65 bps) Mortgage term

Please Note:

  • There is no change to the Upfront Mortgage Insurance Premium (UFMIP). This remains at 175 Basis Points (bps) (1.75%) of the Base Loan Amount
  • The MIP reduction applies to all Title II mortgages except Streamline Refinance and Simple Refinance Mortgages used to refinance a previously FHA endorsed Mortgage on or before May 31, 2009.
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