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What do I need to do to get rid of my FHA MIP?

by Balina67 from Bolinas, California. Aug 7th 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,658 contributions

It depends on when your loan was initiated, but the only way to rid of MIP on FHA is to refinance out of it, or if it was initiated prior to June this year, you would have to wait till 5 years has passed and you pay down your original principal balance to where you owe 78% or less than your original mortgage amount.. Notice I did not say you needed to have 22% equity.. that's because with FHA, it does not matter what your home is worth, but only what percentage of the original balance is still outstanding.. If your loan was initiated after June 2013, your MIP is for the life of the loan in most cases.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 7th 2013
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David Sanders (David_Sanders)
#811 ranked lender in California - 59 contributions

Hi Balina, If your loan was originated after April 1st 2013. Theres a good chance you cannot get rid of MIP unless you refinance into a conventional loan. However if you got your loan before and your LTV (loan to value) is now 78% you can contact your mortgage servicer and request the MIP to be dropped. They may order an appraisal or just do it with an automatic value system. Depends on the servicer. If you have additional questions. Give me a call. I lend in California. david@crossroadsfunding.com 949-529-5521 BRE:01930045 NMLS:1052080.

Aug 7th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Pay the loan down, if it is older than April 1, 2013.

Aug 7th 2013
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Stacey Nielsen (Unitywestlending)
#913 ranked lender in California - 123 contributions

FHA mortgage insurance is not permanent. Eventually, FHA mortgage insurance can go away. The schedule for getting rid of MIP changes by loan term. For FHA loans endorsed prior to June 3, 2013, the MIP cancelation terms are as follows :30-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value and annual MIP has been paid for at least 60 months.15-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value. There is no requirement for MIP to be paid for at least 60 months. Note that the loan-to-value calculation is not based on the current appraised value of the home; it's based on the FHA's last known value of the home. In many situations, the last known value is the home's purchase price. Using these rules, homeowners with a 30-year fixed rate FHA mortgage must pay mortgage insurance for at least five years before it can go away. Homeowners with a 15-year fixed-rate FHA mortgage can have MIP removed as soon as LTV drops to 78%. At today's mortgage rates, a 30-year FHA mortgage on which the minimum 3.5 percent downpayment was made would reach 78% LTV in roughly 10 years. A 15-year fixed would require 26 months. Again, beginning June 3, 2013, the FHA MIP rules change. Some newer FHA loans will pay annual MIP for the full 30 years.

Aug 7th 2013
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Blake Kleckner (BlakeK)
#390 ranked lender in California - 257 contributions

It depends upon when your FHA loan was originated and how much your home's loan-to-value ratio (LTV) was at the time. It could be that you can get out of it now if this occurred before 6/3/13. If your loan was originated on or after this date, when FHA MI became for the life of the loan depending upon particular circumstances, you could be in it for at least 11 years, if not longer. Without knowing the specifics of your loan, it's impossible to determine just when the MI can be eliminated. However, there could be a way out of it in 30 to 45 days, but more info is needed to determine this. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to explain your options. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 42 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Aug 7th 2013
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Dr. Shab Kavandi (skavandi)
#471 ranked lender in California - 53 contributions

We do offer loan program which can get rid of MI and at the same time reduce your rate! Call me I can give you the detail: 714 639 6694thanks,

Aug 7th 2013
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Jenny Baker (mortgagemom)
#72 ranked lender in Georgia - 26 contributions

Call your mortgage holder and ask. They will have your loan specifics and are the best place to start

Aug 7th 2013
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Call Me. I have a program for you to get rid of the FHA MIP. 800-221-0898 Xt 101Greg Sandler, Regional Branch ManagerNMLS 933107Equity Home Loans, A Division of GEM Mortgagegsandler@eqloans.comwww.eqloans.com Office - 800-221-0898 ext 101 Fax - 800-221-6548Mobile - 916-776-6424950 Reserve Drive Suite 100 Roseville CA 95678

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