For FHA loans at 90% LTV or lower, MIP stays on for how long?

For FHA loans at 90% LTV or lower, MIP stays on for how long?

• A. Lifetime
• B. 11 Years
• C. 15 Years
• D. 5 Years

Answer: (B)

The key idea is how long FHA mortgage insurance is required depends on the original loan-to-value. For FHA loans with an original LTV of 90% or less, the annual MIP is required for 11 years. After that period, as long as you’re current on the loan, the MIP can be canceled. If the original LTV is greater than 90%, MIP typically stays for the life of the loan. So, 11 years is the standard duration for the 90% LTV or lower scenario.

The key idea is how long FHA mortgage insurance is required depends on the original loan-to-value. For FHA loans with an original LTV of 90% or less, the annual MIP is required for 11 years. After that period, as long as you’re current on the loan, the MIP can be canceled. If the original LTV is greater than 90%, MIP typically stays for the life of the loan. So, 11 years is the standard duration for the 90% LTV or lower scenario.