When does PMI go away on an FHA loan? MIP rules by down payment
FHA mortgage insurance (MIP) lasts 11 years with 10% or more down and the life of the loan with less. Rules by case date, 2026 MIP rates, and how to remove it.
The short answer
On FHA loans with case numbers assigned on or after June 3, 2013, annual mortgage insurance (MIP) lasts 11 years if you put at least 10% down, and for the life of the loan if you put down less (HUD Mortgagee Letter 2013-04). Most 2026 borrowers pay a 1.75% upfront premium plus 0.50% to 0.55% a year. The usual way to drop MIP early is to refinance into a conventional loan once you have 20% equity.
Key numbers
- 10% or more down
- MIP ends after 11 years
- Under 10% down
- MIP for the life of the loan
- Upfront MIP
- 1.75% of the base loan
- Annual MIP (most loans)
- 0.50% to 0.55%
How long FHA mortgage insurance lasts
| When your case number was assigned | Down payment (LTV at origination) | When annual MIP ends |
|---|---|---|
| June 3, 2013 or later | 10% or more (LTV 90% or less) | After 11 years |
| June 3, 2013 or later | Less than 10% (LTV above 90%) | Life of the loan (up to 30 years) |
| Jan. 1, 2001 to June 2, 2013 (term over 15 years) | Any | Automatically at 78% LTV on the original schedule, after at least 5 years of payments |
The 2013 rule comes from HUD Mortgagee Letter 2013-04. The older automatic-cancellation rule still applies to loans from that era and is described in HUD Handbook 4000.1. FHA measures LTV on the original sales price or appraised value, not today's value, and a new appraisal doesn't count.
FHA MIP rates in 2026
| Term | Base loan amount | LTV | Annual MIP |
|---|---|---|---|
| More than 15 years | Up to $832,750 | 90% or less / 90.01%-95% / above 95% | 0.50% / 0.50% / 0.55% |
| More than 15 years | Above $832,750 | 90% or less / 90.01%-95% / above 95% | 0.70% / 0.70% / 0.75% |
| 15 years or less | Up to $832,750 | 90% or less / above 90% | 0.15% / 0.40% |
Rates are from HUD Mortgagee Letter 2023-05, which ties the loan-amount threshold to the national conforming loan limit ($832,750 for 2026, per FHFA). Every FHA purchase loan also pays a 1.75% upfront premium, usually financed into the loan.
Example: a $400,000 FHA loan with 3.5% down pays $7,000 upfront (often financed) and 0.55% a year, about $183 a month in the first year, for the life of the loan. Compare conventional PMI in the PMI calculator.
How to get rid of FHA mortgage insurance
- Refinance into a conventional loan once your balance is 80% or less of the home's current value. A conventional loan at 80% LTV has no PMI. Run the break-even math first, because closing costs can outweigh the savings if your current rate is low. Refinance break-even math.
- Wait out the 11 years if you put 10% or more down.
- Pay down the loan and sell or refinance on your own timeline. Prepaying an FHA loan doesn't cancel MIP on post-2013 loans with less than 10% down.
FHA MIP vs. conventional PMI
Conventional PMI can be canceled at 80% of the original value and ends automatically at 78% under the Homeowners Protection Act (CFPB). FHA MIP doesn't follow those rules. With good credit, conventional PMI is often cheaper too: Arch MI's 2026 card lists 0.38% a year for a 760+ score with 5% to 10% down, versus FHA's 0.50%. FHA can still win for lower scores, where conventional PMI rises above 1%.
Frequently asked questions
When does PMI go away on an FHA loan?
With 10% or more down, after 11 years. With less than 10% down, it lasts for the life of the loan, unless you refinance into a conventional loan.
Can I remove MIP from my FHA loan at 20% equity?
Not on loans from June 3, 2013 onward. MIP stays for 11 years or the life of the loan. Refinancing to a conventional loan at 80% LTV or less is how most borrowers drop it.
How much is FHA MIP in 2026?
A 1.75% upfront premium plus 0.50% to 0.55% a year for most 30-year loans up to $832,750, and 0.70% to 0.75% above that amount.
Does FHA MIP go away after 11 years?
Yes, if your loan-to-value was 90% or less at origination (10% or more down) and your case number was assigned on or after June 3, 2013.
Is FHA MIP refundable?
Part of the upfront premium can be credited when you refinance into another FHA loan within three years. It isn't refunded if you refinance into a conventional loan or sell.