Forgotten Your Password?

Need to Register?

Question Icon

Is the lender still insured even after the borrower stops making monthly MIP payments on a FHA loan?

by kovrehus868 from , California. Jan 12th 2018 Reply

#1046 ranked lender in California - 5 contributions

Yes The insurance is pooled for this reason to protect the investor

Jan 12th 2018

The MIP payments on an FHA loan are combined with the monthly principle and interest payments. If the borrower stops making heir MIP payments they've basically stopped paying their mortgage and the mortgage company will start foreclosure proceeding depending on foreclosure laws for the state the property is in at thats when the mortgage insurance that the borrower has previously paid kicks in.

Jan 25th 2018
Subscribe to our news feed.