What is the minimum length of Mortgage Insurance Premium (MIP) for an FHA loan?

The minimum length of the Mortgage Insurance Premium (MIP) for an FHA loan is the life of the loan. FHA loans require MIP to protect lenders against the possibility of borrower default, and this insurance must typically be paid throughout the entire duration of the loan unless the borrower makes a substantial down payment.

For FHA loans originated after June 3, 2013, if the borrower puts down less than 10%, MIP lasts for the life of the loan. Even if the loan is paid down to a lower principal balance, the MIP requirement remains in place unless the loan is refinanced. This ensures that lenders are protected throughout the loan term.

This long-term requirement is a distinguishing characteristic of FHA mortgage insurance and underscores the ongoing commitment of borrowers to maintain the insurance, ensuring lenders have protection throughout the life of their loan.