Do FHA require you to pay MIP even if it's under 80%LTV? Refinancing from a conventional to FHA loan.?

Question

I am looking to refinance from a conventional to FHA loan coming from 8.75 to 6.375. However, I don't pay MIP because I put down 20%. Can they still charge MIP if I stay under 80% LTV?

Answer 1

Yes - and it's PMI

Answer 2

An FHA loan is still through a bank, the FHA just guarantees the loan.  Many if not most states have outlawed charging MIP with 20% or more equity.  Check with your state's attorney general's office - they should have someone there who specializes in mortgage law in the state that can tell you what the regs are.

Answer 3

FHA guidelines will require you to have MIP at least for 5 years, no matter what the LTV is. Why are you not trying to refi with a convential loan?

Answer 4

yes --you will have an up front MIP and monthly for 60 months. But if you do a 15 year note just up front MIP funding fee and no monthly

I am a mortgage banker in TN & KY

Answer 5

Since you will be refinancing, you will be taking out a 'new' loan and any MIP requirement, which vary from state to state,  must be met under the new loan.