FAQs

How do I delete MIP?

Unlike conventional PMI, the rules for removing an FHA Mortgage Insurance Premium (MIP) are strictly set by the Federal Housing Administration (FHA). Because of these federal guidelines, you cannot submit a manual request to cancel your MIP, nor can you pay down your loan early to drop it. Instead, your MIP can only be removed in one of two ways:

  1. Automatic Cancellation: If your loan meets the FHA’s specific eligibility requirements (listed below), your MIP will automatically drop off your account once you reach the required milestone.
  2. Refinancing: If your FHA loan requires MIP for the life of the loan, your only option to remove it is to refinance your mortgage into a Conventional loan once you have built up enough home equity (typically 20%).

When will my MIP automatically cancel?

If you are waiting for automatic cancellation, your eligibility depends entirely on when your loan was closed.

Loans closed on or after June 3, 2013 For most modern FHA loans, the timeline depends on the size of your original down payment:

  • Down payment of less than 10%: MIP will remain on your loan for its entire life and cannot be canceled. (Refinancing is your only option to remove it).
  • Down payment of 10% or more: MIP will be automatically canceled after your loan has aged exactly 11 years.

Loans closed between January 1, 2001, and June 2, 2013 Your MIP will be automatically canceled once you meet all three of the following conditions:

  • Your scheduled loan balance reaches 78% of your home’s original appraised value.
  • You have paid your MIP for at least 5 years (60 months).
  • You have a clean payment history (no 30-day late payments in the past 12 months).

Loans closed between July 1991 and December 2000 For older FHA loans in this timeframe, MIP cannot be canceled and must remain on the loan for its entire life.

If you’d like to explore refinancing to remove your MIP, contact one of our Loan Experts at 866.549.3583.