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| The information displayed in the Loan Balance at Final MIP Date and Final Monthly MIP Payment Date fields depends on the following: |
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FHA Case Number Assigned on or after June 3, 2013 |
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FHA Case Number Assigned before June 3, 2013 and Closing Date after December 31, 2001 |
| FHA Case Number Assigned on or after June 3, 2013: Per Mortgagee Letter 2013-04, the duration of monthly (annual) mortgage insurance premium (MIP) payments is based on the amortization term and loan-to-value (LTV) ratio at loan origination as follows: |
| Term |
LTV at Loan Origination |
Monthly MIP Payments |
| Less than or equal to 15 years |
Less than or equal to 78% |
11 years |
| Less than or equal to 15 years |
78% to 90% |
11 years |
| Less than or equal to 15 years |
Greater than 90% |
Loan term |
| Greater than 15 years |
Less than or equal to 78% |
11 years |
| Greater than 15 years |
78% to 90% |
11 years |
| Greater than 15 years |
Greater than 90% |
Loan term |
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| The Loan Balance at Final MIP Date is displayed as N/A (not applicable). The Final Monthly MIP Payment Date is either 11 years from the date of insurance endorsement or the date of loan maturity (i.e., date the last monthly MIP will be assessed). |
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| FHA Case Number Assigned before June 3, 2013 and Closing Date after December 31, 2000: Monthly mortgage insurance premium
(MIP) payments are made until the unpaid principal balance reaches 78% (or 22% equity) for cases under the Mutual Mortgage Insurance
(MMI) fund that meet the eligibility requirements described in Mortgagee Letter 2000-46. (This threshold
amount, displayed in the Loan Balance at Final MIP Date field,
will be reached at the month/year displayed in the Final Monthly MIP Payment Date field.) In addition, for mortgages
with terms of over 15 years, borrowers must pay monthly MIP at least five years
from the beginning of amortization, regardless of when the 78% threshold is reached. |
| For cases with loan-to-value ratios below
78% or if the borrower has made a large down payment, the message Mortgage
Amount is less than 78% of the Property Value will be displayed in place
of the Loan Balance at Final MIP Date value. In these situations,
the borrower is still required to pay monthly MIP for at least five years if the
mortgage term is more than 15 years. |
| A letter
from the Federal Housing Commissioner is sent to each mortgagor affected by the
78% rule to provide them with the key information including projected Final Monthly MIP Payment Date. |
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Last
revised:
May 14, 2013
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