U.S. Mortgage Index

FHA mortgage insurance premium

Definition

An FHA mortgage insurance premium is the mortgage-insurance charge required on many FHA-insured loans. It can include an up-front premium and an ongoing premium. It is not private mortgage insurance.

In plain English

FHA loans are insured by the Federal Housing Administration. That insurance has a cost to the borrower, commonly called MIP. Part may be collected up front and part with the monthly payment. Private mortgage insurance is the conventional-loan form already explained on its own page. This page is the FHA program charge. It does not state current premium rates.

Technical definition

CFPB’s FHA funding fee heading describes an FHA funding fee and a monthly insurance premium for most single-family FHA programs, including the up-front mortgage insurance premium. Those labels are program context for this concept.

Why it matters

Disclosures and monthly totals can include MIP. Calling it PMI misstates the program.

Commonly confused with

Sources reviewed

Important note

This page does not publish current FHA premium rates. MIP is not PMI.