FHA Loan without Mortgage Insurance – Yes! It’s Possible.

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Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Yes it is possible to get a California FHA Loan without paying for the annual Mortgage Insurance (MI). While you will still pay the Upfront Mortgage Insurance Premium of 1.75%, the annual Mortgage Insurance Premium can be completely waived in one scenario.

**This is changing starting June 3, 2013. Get the details on this blog post published on February 23, 2013.**

FHA recently issued a Mortgagee Letter that confirms that the Annual Mortgage Insurance Premium will not be charged if a loan meets these 2 criteria:

  • The Loan is a 15 Year Fixed Loan
  • LTV (Loan to Property Value Ratio) is at 78% or less of the property Value

See the chart below for the complete breakdown of FHA Upfront and Annual Mortgage Insurance Premiums.
FHA Annual Mortgage Insurance Premium (MIP)

You may also like to read – 6 Myths of FHA Loans: What’s True, What’s not!