MIP is not PMI
The upfront premium is modeled at 1.75% of the base loan and can be financed, which raises the amount that accrues interest.
The annual premium depends on term, loan size, and loan-to-value in that 2023 letter, including its $726,200 split. That split is not this year's conforming-loan limit.
Eligibility is bigger than the down payment
Property standards, mortgage limits, and credit rules still apply. A calculator that accepts 3.5% down has not approved the loan.
If you enter less than 3.5%, the page says the down payment is under the commonly cited minimum. It still shows the math.
| Piece | Assumption |
|---|---|
| Upfront MIP | 1.75% |
| Annual MIP | HUD ML 2023-05 schedule |
| Minimum down | 3.5% is the common figure, not a finding |
Calculators
Related guides
Sources
Common questions
Does FHA MIP fall off at 80%?
Not under the conventional PMI rule. FHA cancellation depends on the term and the original loan-to-value. Do not use the PMI removal dates for an FHA loan.
Are the premiums current?
They are the 2023-05 schedule, labeled as such. Confirm HUD's premium for a new case number.