You can get rid of what borrowers commonly call PMI on an FHA loan in some situations, but FHA technically calls its coverage mortgage insurance premiums, or MIP.
For FHA case numbers assigned on or after June 3, 2013, your original loan-to-value ratio generally determines how long annual MIP lasts. An original LTV of 90% or less generally means 11 years of MIP. An original LTV above 90% generally means MIP lasts for the loan term.
Older FHA loans can follow different cancellation rules. Some borrowers with case numbers assigned before June 3, 2013 can remove annual MIP without refinancing after meeting HUD's applicable LTV, payment-history and seasoning requirements.
FHA Mortgage Insurance Removal Basics
| FHA Loan Scenario |
How Long Annual MIP Lasts |
Can You Remove It Without Refinancing? |
| Case number assigned on or after June 3, 2013, original LTV above 90% |
Loan term |
Generally no. Paying down principal or gaining equity does not create an early-cancellation right. |
| Case number assigned on or after June 3, 2013, original LTV of 90% or less |
11 years |
MIP ends after the required period. Extra principal generally does not shorten it. |
| Eligible loan closed after Dec. 31, 2000 with case number assigned before June 3, 2013 |
Can generally end when the balance reaches 78% of the original value, subject to applicable rules |
Potentially. Extra principal can accelerate cancellation for eligible older loans. |
| Refinance into an eligible conventional or other non-FHA loan |
FHA MIP ends when the FHA loan is paid off |
Yes, if you qualify and the new loan makes financial sense. |
Your FHA case number assignment date and original LTV are the two most important details for determining which set of MIP rules applies.
What Is FHA PMI, or MIP?
Borrowers often call FHA mortgage insurance "PMI," but the two are different. FHA loans use mortgage insurance premiums, or MIP. Private mortgage insurance, or PMI, applies to certain conventional loans.
The broader differences between PMI vs. MIP include how the insurance is charged and how it can be removed.
FHA mortgage insurance generally has two components:
- Upfront mortgage insurance premium: HUD currently charges 1.75% of the base loan amount for most FHA purchase and refinance loans. It can generally be financed into the mortgage.
- Annual mortgage insurance premium: An ongoing premium generally collected through monthly mortgage payments. The rate depends on factors including the loan term, original LTV and base loan amount.
HUD reduced annual MIP rates by 30 basis points for many FHA Title II forward mortgages effective for mortgages endorsed on or after March 20, 2023. That reduced the cost of annual MIP but did not eliminate mortgage insurance or change the basic post-2013 duration rules.
Can You Get Rid of PMI on an FHA Loan?
Yes, but the method depends largely on when your FHA case number was assigned.
For case numbers assigned on or after June 3, 2013, borrowers generally cannot request early annual MIP cancellation simply because the loan balance falls or the home increases in value.
If your original LTV was 90% or less, annual MIP generally ends after 11 years. If your original LTV was above 90%, annual MIP generally continues for the loan term.
Some older FHA loans use different cancellation rules and may allow MIP to end when the balance reaches 78% of the property's original value.
When Does PMI Go Away on an FHA Loan?
When MIP Ends After 11 Years
For FHA case numbers assigned on or after June 3, 2013, annual MIP generally lasts 11 years when the original LTV was 90% or less.
On a typical purchase, a 90% LTV corresponds to a down payment of at least 10%. FHA mortgage insurance still applies initially, but the annual MIP has a defined duration rather than continuing for the entire loan term.
When MIP Lasts for the Loan Term
When the original LTV was greater than 90%, annual MIP generally lasts for the loan term under the current post-2013 rules.
This applies to many borrowers who purchase with FHA's 3.5% minimum down payment because the resulting original LTV is above 90%.
The duration is based on the original LTV. Paying the loan down to 80% or 78% LTV later does not convert a post-2013 life-of-loan MIP requirement into an 11-year requirement.
How Your FHA Case Number Date Changes the Rules
FHA loans with case numbers assigned before June 3, 2013 can follow older cancellation rules.
HUD's current servicing guidance generally allows annual MIP cancellation for eligible FHA loans that closed after Dec. 31, 2000 and received a case number before June 3, 2013 when the unpaid principal balance reaches 78% of the lesser of the original purchase price or appraised value.
For mortgages with terms longer than 15 years, annual MIP generally must also have been paid for at least five years.
Older 15-year FHA loans have additional rules based on the case-number date and original LTV. If your loan falls into this category, check your loan documents and confirm the scheduled cancellation date with your servicer.
Can You Remove FHA MIP After Reaching 20% Equity?
For most FHA loans with case numbers assigned on or after June 3, 2013, no.
Reaching 20% equity does not by itself create a right to cancel annual FHA MIP. Home appreciation also does not change the original LTV used to establish the MIP duration.
That differs from conventional PMI. Under federal rules applicable to many conventional mortgages, borrowers can generally request PMI cancellation when the principal balance is scheduled to reach 80% of the home's original value if the other requirements are met. Automatic termination generally occurs at 78% when the borrower is current.
You can read more about how long PMI lasts on a conventional loan.
How to Get Rid of PMI on an FHA Loan Without Refinancing
Whether you can get rid of FHA MIP without refinancing depends on which cancellation rules apply to your loan.
Wait for the 11-Year MIP Period to End
If your FHA case number was assigned on or after June 3, 2013 and your original LTV was 90% or less, annual MIP should end after the required 11-year period.
You do not need to refinance solely to reach the scheduled MIP termination point.
Use the Cancellation Rules for an Eligible Older FHA Loan
If your FHA loan closed after Dec. 31, 2000 and received its case number before June 3, 2013, you may qualify for MIP cancellation when your balance reaches 78% of the original property value.
For eligible loans, extra principal payments can help you reach the 78% threshold sooner. Borrower-requested cancellation generally also requires an acceptable recent payment history, and loans with terms longer than 15 years generally remain subject to the five-year minimum.
Extra Principal Does Not Shorten Post-2013 MIP Duration
For FHA case numbers assigned on or after June 3, 2013, making additional principal payments does not give you a right to cancel annual MIP early.
If your original LTV was above 90%, there generally is no early MIP cancellation option within that FHA loan. The mortgage must be paid off, refinanced or otherwise terminated for the MIP obligation to end before the loan term.
How to Remove FHA Mortgage Insurance by Refinancing
If your annual FHA MIP is scheduled to remain for the loan term, refinancing into an eligible non-FHA mortgage can remove it because the original FHA loan is paid off.
Refinancing Into a Conventional Loan
A common option is an FHA-to-conventional refinance.
If the new conventional mortgage has a sufficiently low LTV, borrower-paid PMI may not be required. If PMI does apply, its cancellation rules differ from FHA MIP.
An FHA Streamline refinance generally does not solve the MIP-removal problem because the replacement mortgage is still FHA-insured and remains subject to applicable FHA mortgage insurance requirements.
Should You Refinance to Remove FHA Mortgage Insurance?
Removing MIP does not automatically make a refinance less expensive.
Compare:
- Your current FHA interest rate
- Your current monthly MIP
- The new mortgage rate
- Whether the new loan requires PMI
- Closing costs and discount points
- The remaining term on the current mortgage
- The term of the new mortgage
- How long you expect to keep the loan
A higher interest rate can offset some or all of the savings from eliminating MIP. You can compare the full economics of a refinance to eliminate mortgage insurance rather than focusing only on the insurance charge.
Example: Does Refinancing to Remove FHA MIP Save Money?
Assume a borrower's mortgage statement shows $180 per month in FHA MIP.
A conventional refinance would eliminate FHA MIP and would not require PMI, but the new principal-and-interest payment would be $80 higher because of the new rate. Closing costs total $5,000.
| Example Item |
Amount |
| Current monthly FHA MIP |
$180 |
| Increase in principal and interest after refinancing |
$80 |
| Net monthly payment savings |
$100 |
| Illustrative refinance closing costs |
$5,000 |
| Simple break-even period |
50 months |
This hypothetical example shows why MIP alone is not the correct refinance comparison. The break-even calculation should use the change in the complete mortgage payment and the actual refinance costs.
An FHA mortgage calculator with MIP can help estimate the insurance portion of an FHA payment, but a refinance comparison also requires the terms of the proposed new loan.
FHA MIP Removal vs. Conventional PMI Removal
| Feature |
FHA MIP |
Conventional PMI |
| Mortgage type |
FHA-insured mortgages |
Conventional mortgages when required |
| Main removal rule |
Depends on FHA case-number date and original LTV |
Federal and investor cancellation rules can apply |
| Does 20% equity automatically create cancellation rights? |
Generally no for post-June 3, 2013 FHA loans |
Borrower-requested cancellation can generally be available at 80% of original value if requirements are met |
| Automatic termination |
Post-2013 MIP follows the applicable 11-year or loan-term duration |
Generally at 78% of original value for covered loans when the borrower is current |
| Can extra principal help? |
For some eligible pre-June 3, 2013 FHA loans, yes. Generally not for post-2013 MIP duration. |
It can help a borrower reach the 80% borrower-requested cancellation threshold sooner on covered loans. |
How to Check Your FHA MIP Removal Options
- Find your FHA case number assignment date. Determine whether it was assigned before or on or after June 3, 2013.
- Check your original LTV. For newer FHA loans, this determines whether annual MIP generally lasts 11 years or for the loan term.
- Review your loan documents. Look for your original mortgage amount, property value and mortgage insurance information.
- Contact your servicer. Ask whether the loan has a scheduled final MIP payment date and which HUD cancellation rules apply.
- Check whether an older loan qualifies for early cancellation. If your case number predates June 3, 2013, ask whether principal prepayments can accelerate the 78% cancellation threshold.
- Compare refinance terms if necessary. Compare the new rate, payment, PMI, closing costs and break-even period before replacing the FHA loan.
Bottom Line
How to get rid of PMI on an FHA loan depends mainly on your FHA case number date and original LTV. FHA technically uses MIP, and post-June 3, 2013 loans generally carry annual MIP for 11 years at 90% LTV or below and for the loan term above 90% LTV.
Some older FHA borrowers can remove MIP without refinancing after reaching HUD's applicable cancellation threshold. If a newer FHA loan carries MIP for the loan term, refinancing into another loan type may be the primary way to eliminate the charge early.
Compare the complete loan economics when considering an FHA vs. conventional loan, not mortgage insurance alone.
Frequently Asked Questions
How Do You Get Rid of PMI on an FHA Loan?
FHA uses MIP rather than PMI. For FHA case numbers assigned on or after June 3, 2013, annual MIP generally ends after 11 years when the original LTV was 90% or less and lasts for the loan term when the original LTV was above 90%. Refinancing may eliminate it sooner.
How Do You Get Rid of PMI on an FHA Loan Without Refinancing?
If your post-2013 FHA loan has an original LTV of 90% or less, you can wait for the required 11-year MIP period to end. Some eligible pre-June 3, 2013 FHA loans can cancel MIP after reaching 78% of the property's original value and meeting HUD's other requirements.
When Does PMI Go Away on an FHA Loan?
For case numbers assigned on or after June 3, 2013, FHA annual MIP generally ends after 11 years when the original LTV was 90% or less. Above 90% original LTV, it generally lasts for the loan term.
How Long Does Mortgage Insurance Last on an FHA Loan?
For most newer FHA loans, annual MIP lasts either 11 years or for the loan term, depending on the original LTV. Older FHA loans can have different cancellation rules based on the case-number date, mortgage term and original LTV.
Can You Drop PMI on an FHA Loan Once You Reach 20% Equity?
Generally not for an FHA case number assigned on or after June 3, 2013. Reaching 20% equity does not create an early-cancellation right for FHA annual MIP. Conventional PMI follows separate cancellation rules.
Does Paying Extra Principal Remove FHA Mortgage Insurance?
For post-June 3, 2013 FHA loans, extra principal generally does not shorten the required MIP period. For certain older FHA loans, principal prepayments can help the balance reach HUD's 78% cancellation threshold sooner if the other requirements are met.
Do FHA Loans With 10% Down Have Mortgage Insurance?
Yes. A 10% down payment does not eliminate FHA mortgage insurance. For a post-June 3, 2013 FHA loan with an original LTV of 90%, annual MIP generally lasts 11 years.
Did the 2023 FHA MIP Reduction Eliminate Mortgage Insurance?
No. HUD reduced annual MIP rates by 30 basis points for many FHA forward mortgages effective for mortgages endorsed on or after March 20, 2023. The change reduced the cost of annual MIP but did not eliminate it or change the basic post-2013 duration rules.
Is FHA MIP the Same as PMI?
No. FHA loans use mortgage insurance premiums, or MIP. PMI is private mortgage insurance used with certain conventional loans. The two follow different pricing and cancellation rules.
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