FHA loans do not carry PMI. They carry MIP, and the rules for getting rid of it come from HUD, not from the federal law that governs conventional PMI. For FHA case numbers assigned on or after June 3, 2013, annual MIP drops off after 11 years only if the original down payment was at least 10%; otherwise it lasts the life of the loan, and a refinance is the usual exit. This guide walks you through finding out which rule applies to you, running the numbers, and deciding whether to wait or refinance. Before you start, have your closing disclosure and your most recent mortgage statement in front of you.
Step 1: Confirm You Have MIP, Not PMI, and Find Your FHA Case Number Date
FHA mortgage insurance has two parts: an upfront premium (UFMIP) of 1.75% of the base loan amount, usually financed into the loan, and an annual premium (MIP) billed monthly through your escrow payment. Private mortgage insurance, or PMI, is the conventional-loan product. “PMI removal requirements” is what most people type into a search box, which is why Duane Buziak hears the term from FHA borrowers constantly. The two products look alike on a statement, but they follow different rulebooks. For a side-by-side look, see FHA MIP vs PMI.
The common mistake is assuming FHA MIP falls off at 78% or 80% loan-to-value, as conventional PMI can. It does not. FHA cancellation depends on when your case number was assigned, your original down payment, and your loan term.
Your FHA case number assignment date is the date that decides which rule set applies: before June 3, 2013, or on or after it. You can find it in two places:
- The first page of your signed note or the FHA-related pages of your closing package, where the case number appears with its assignment date or a number format that points to it.
- Your closing disclosure, which lists the loan type and, in most packages, the FHA case number.
If the date is not obvious, ask your servicer to confirm the case number assignment date in writing. Guessing from your closing date can mislead you, because the case number is assigned weeks or months before closing. A loan that closed in mid-2013 may still sit under the older rules.
Step 2: Match Your Original Down Payment and Loan Term to the Cancellation Rule
With your case number date and original loan-to-value (LTV) ratio in hand, you can classify your loan. The table below summarizes the rules from HUD Mortgagee Letter 2013-04 and HUD Handbook 4000.1, as published at hud.gov. Rules can change, so confirm against the current Handbook before you act. If you want the full rulebook on premiums, our guide to FHA mortgage insurance requirements covers the key rules.
- Case number on or after June 3, 2013, original LTV above 90% (less than 10% down), term over 15 years: annual MIP for the life of the loan.
- Case number on or after June 3, 2013, original LTV 90% or lower (10% or more down), term over 15 years: annual MIP for 11 years.
- Case number on or after June 3, 2013, term of 15 years or shorter: the duration depends on the original LTV. HUD’s rules for these terms use a different LTV threshold, so check the current Handbook 4000.1 language or ask for a written answer from your servicer rather than relying on the 30-year rows above.
- Case number before June 3, 2013: MIP may be cancelable once the loan reaches 78% LTV and you have met the minimum payment period. The exact conditions are in Handbook 4000.1, so verify them before assuming you qualify.
Two quick classifications show how this plays out. Suppose you bought in 2022 with 3.5% down on a 30-year FHA loan. Your original LTV was about 96.5%, so MIP stays for the life of the loan, and your realistic exit is a refinance. Now suppose you put 10% down on a 30-year loan with a post-2013 case number. Your MIP runs 11 years and then ends. If you are still weighing how much to put down, review the FHA down payment requirements.
Note that the LTV test uses your original LTV, based on the purchase price or appraised value at origination. Paying the balance down faster or watching your home appreciate does not move you into a different row.
Step 3: Pull Your Current Balance, Home Value, and Annual MIP Rate
Gather your latest mortgage statement. You need the principal balance (not the payoff figure, which includes interest) and the escrow breakdown, which shows the monthly MIP charge. Then estimate your home’s current value from recent comparable sales or an online estimate. Appreciation counts toward your equity, but a lender will only use it after a new appraisal confirms it, so treat your estimate as a planning number.
Next, identify your annual MIP tier. FHA annual MIP varies by loan term, loan amount, and original LTV, and ranges from 0.15% to 0.75% depending on the combination. As of October 2026, a very common tier is 0.55% for a 30-year loan with an original LTV above 95% and a base loan amount at or below $726,200, following HUD Mortgagee Letter 2023-05, which reduced annual MIP effective March 20, 2023. Your own tier may differ, especially if you put more down or have a shorter term. The full schedule is in HUD Handbook 4000.1, Appendix 1.0, at hud.gov. UFMIP remains 1.75% of the base loan amount under ML 2015-01. For more ways to bring that monthly charge down, see how to reduce mortgage insurance payments.
Now calculate two numbers:
- Current LTV: principal balance divided by estimated home value. A $270,000 balance on a $360,000 home is 0.75, or 75% LTV.
- Equity needed for 20%: home value times 0.20 is the equity target, and value minus balance is what you have. In that example, 20% of $360,000 is $72,000, and you hold $90,000 in equity, so you clear it.
Twenty percent equity is a common threshold for a new loan without mortgage insurance, though requirements vary by loan program and lender.
Step 4: Check Whether Your MIP Ends Automatically and Verify It With Your Servicer
If your loan falls into the 11-year category, you do not need to file a request. MIP should end automatically after the 11th year of payments, which is the 132nd monthly payment. Do not simply trust that it happened. Take these steps:
- Calculate your 132nd payment date from your first payment date on the note.
- About 60 to 90 days before that date, contact your servicer and ask for written confirmation of the MIP termination date and your FHA case number date.
- Check the first statement after the date. The monthly MIP line in your escrow breakdown should be gone and your payment should drop accordingly.
- If it still appears, send a written request citing your loan terms and ask for a corrected statement and a refund of any MIP charged after the termination date.
The upfront premium works differently. UFMIP of 1.75% was paid at closing, usually rolled into your balance, and it is not refunded or removed when annual MIP ends. If you refinance into another FHA loan within three years, HUD allows a limited UFMIP credit toward the new premium. Verify the current credit schedule in HUD’s guidance before you count on a specific amount.
One mistake to avoid: paying a third party a fee to “remove” your MIP. A servicer cannot waive MIP on a loan that does not meet the HUD rule, and nobody else can do it for you. If your loan qualifies, it ends at no cost. If it does not, the only way out is a different loan, which is the subject of the next step. Our overview of FHA mortgage insurance removal strategies lays out the options in more detail.
Step 5: Run the Dollar Math on Keeping MIP Versus Refinancing Out of It
Here is an illustration, not a quote. Suppose you own a home in Henrico County, VA, with an assessed value of $360,000, a remaining balance of $270,000, and a 30-year FHA loan with an annual MIP tier of 0.55%. Assume a 6.50% rate, with about 25 years remaining and principal and interest of roughly $1,823 per month. Assume homeowners insurance of $1,800 per year.
- Monthly MIP: $270,000 × 0.0055 ÷ 12 = $123.75 (it declines slightly as the balance falls).
- Property tax: Henrico’s rate is $0.85 per $100 of assessed value (henrico.us, verified as of the writing date). $360,000 ÷ 100 × $0.85 = $3,060 per year, or $255 per month.
- Homeowners insurance: $1,800 ÷ 12 = $150 per month.
- Total monthly housing cost: $1,823 + $123.75 + $255 + $150 = $2,351.75.
MIP is about $1,485 per year in this example. If you plan to stay seven more years, the remaining MIP cost is roughly $10,000, a little less as the balance declines. Now compare that to refinance costs. Suppose closing costs on a new loan run 3% of $270,000, or $8,100, and the new loan eliminates the $123.75 MIP while keeping your payment of principal and interest about the same. Break-even is $8,100 ÷ $123.75, about 65 months. If a rate change shifts your payment, add that difference to the monthly saving before dividing. Ask about no-out-of-pocket closing options if cash is tight, since the cost may then be built into the rate. It also helps to understand how origination fees work before you compare quotes.
An FHA streamline refinance can lower your rate, but it does not remove MIP, because the new loan is still an FHA loan with its own premiums. To see how rate-driven refinancing works, read about the FHA rate and term refinance. Chesterfield ($0.89 per $100, chesterfield.gov/823) and Hanover ($0.81, hanovercounty.gov/386) move the tax line a little, about $144 per year up or $144 down on the same $360,000 value. Florida, Tennessee, Georgia, and D.C. borrowers should substitute their own local rates.
Step 6: Start the Exit Plan: Get a Refinance Review With Duane Buziak
Leaving MIP behind through a refinance generally requires three things: enough equity (commonly 20% if you want no mortgage insurance on the new loan), a credit score and debt-to-income ratio that qualify, and an appraisal that supports your value. If your score needs work first, these tools to improve your credit score can help. The destination loan matters less than whether the numbers clear; Duane Buziak can walk through the options with you.
Bring these to your review:
- Two years of tax returns or W-2s
- Recent pay stubs
- Your latest mortgage statement
- Your estimated home value and the case number date from Step 1
Ask about a pre-qualification review before any hard credit pull. Duane Buziak uses NoTouch Credit Pull, a soft pull with no hard inquiry, for an initial look at your options.
Timing is the final decision. If you are within 12 to 24 months of the 11-year mark, waiting may beat paying refinance costs, since the MIP you would avoid is small compared with closing costs. If you are on the life-of-loan rule, or you are years from the cutoff, the break-even math from Step 5 decides. Duane Buziak is a broker, not a lender, and compares pricing across hundreds of wholesale lenders rather than a single shelf, so you see more than one offer.
Your Next Move: A Quick Review of Your MIP Numbers
You now have the four facts that settle the question: your case number date, your original LTV, your current LTV, and your break-even month. If the first two put you on the 11-year path, your job is to verify it with your servicer. If they put you on the life-of-loan path, the last two tell you whether a refinance is worth it.
Schedule your free consultation today with FHA Mortgages by Duane Buziak. Bring those four numbers and Duane will check them, compare options through Dare to Compare pricing across hundreds of wholesale lenders, and show you no-out-of-pocket closing options where they fit. Ready to take the first step toward homeownership with an FHA loan tailored to your needs? Call 804-212-8663 and discover how our award-winning team can help you navigate the path to your new home with competitive rates and expert guidance. Coast2Coast Mortgage LLC, NMLS #1110647, is licensed in FL, GA, KY, MD, NC, SC, TN, TX, VA, WV, and DC at 4860 Cox Rd, Glen Allen, VA 23060.
