When Does PMI Go Away on FHA Loan? (2026 Guide)
Understand FHA Mortgage Insurance Premium (MIP) rules, when it can be removed, and how to calculate your MIP costs.
FHA MIP Calculator
Monthly MIP
$212.50
MIP stays for the life of the loan (less than 10% down)
FHA MIP Removal Rules
10%+ Down Payment
If you put down 10% or more, the annual MIP can be removed after 11 years of on-time payments.
Less Than 10% Down
If you put down less than 10%, the annual MIP remains for the entire term of the loan (typically 30 years).
FHA MIP vs. Conventional PMI
FHA MIP
- • Required for all FHA loans
- • Upfront + annual premium
- • May stay for life of loan
- • Lower down payment allowed (3.5%)
Conventional PMI
- • Required only with less than 20% down
- • Annual premium only
- • Removed at 78% LTV automatically
- • Better credit required
How to Get Rid of FHA MIP
1. Refinance to Conventional
Refinancing your FHA loan to a conventional loan allows you to eliminate MIP once you have 20% equity.
2. Make Extra Payments
Paying extra toward principal can help you build equity faster, but won't remove MIP on most FHA loans.
FHA MIP Removal Timeline (2026)
As of 2026, here's how long you'll pay MIP on an FHA loan based on your down payment and loan amount:
| Down Payment | LTV | Upfront MIP | Annual MIP Rate | MIP Duration | Remove MIP? |
|---|---|---|---|---|---|
| 10%+ ($35,000) | 90% or less | 1.75% | 0.50% | 11 years | Yes |
| 5% ($17,500) | 95% | 1.75% | 0.55% | Life of loan | No |
| 3.5% ($12,250) | 96.5% | 1.75% | 0.55% | Life of loan | No |
| 0% (Streamline) | Any | 1.75% | 0.50-0.55% | Life of loan | No |
Key Insight: As of 2026, the only way to remove FHA MIP is putting 10% or more down. On a $350,000 home with 10% down, you'll pay approximately $19,250 in MIP over 11 years before it's removed.
Frequently Asked Questions
When does PMI go away on FHA loans?
For FHA loans with case numbers assigned on or after June 3, 2013, the annual MIP (Mortgage Insurance Premium) stays for the life of the loan unless you put down 10% or more, in which case it can be removed after 11 years. In 2026, this policy remains unchanged.
What is FHA MIP in 2026?
FHA MIP (Mortgage Insurance Premium) is the insurance required for FHA loans. It consists of an upfront premium (1.75% of loan) and an annual premium paid monthly. As of 2026, annual MIP rates range from 0.45% to 1.05% depending on loan-to-value ratio.
How much is FHA MIP?
The upfront MIP is typically 1.75% of the loan amount. The annual MIP ranges from 0.45% to 1.05% depending on the loan term and LTV ratio. In 2026, on a $300,000 loan, annual MIP ranges from $1,350 to $3,150 ($113-$263/month).
Can I cancel FHA MIP early?
For most FHA loans, MIP cannot be canceled early unless you refinance to a non-FHA loan. The only exception is loans with 10% or more down payment, which can have MIP removed after 11 years. In 2026, refinancing to conventional is often the best option to remove MIP.
What is the FHA MIP policy in 2026?
As of 2026, FHA loans require: upfront MIP of 1.75% of the loan amount (can be rolled into loan), and annual MIP based on LTV ratio (0.45-1.05%). For loans with LTV over 95%, MIP is required for the life of the loan unless you have 10% down.
How much is FHA MIP upfront and annually?
In 2026, upfront MIP is 1.75% of the loan (can be financed). Annual MIP varies: for LTV ≤95%, it's 0.55-0.80%; for LTV >95%, it's 0.70-1.05%. On a $300,000 loan with 5% down: upfront = $5,250, annual = $2,025-$3,150 ($169-$263/month).
Can I refinance FHA loan to remove MIP?
Yes, you can refinance from an FHA loan to a conventional loan once you have 20% equity or your home value increases enough. In 2026, with conventional rates around 7%, refinancing makes sense if you can eliminate MIP and the rate is competitive.
What is the difference between FHA MIP and conventional PMI?
FHA MIP is required for the life of the loan (with exceptions), while conventional PMI can be canceled once you reach 20% equity. FHA MIP costs 0.55-1.05% annually, while conventional PMI is typically 0.5-1%. In 2026, conventional PMI is often cheaper in the long run.
How do I calculate my FHA MIP removal date?
For FHA loans with 10%+ down payment, MIP can be cancelled after 11 years. For loans with less than 10% down, MIP lasts the entire loan term. In 2026, you can check your loan terms on annual statements or ask your servicer for the exact removal date.
Is FHA MIP tax deductible?
FHA MIP may be tax deductible for certain homeowners, subject to income limits. In 2026, the mortgage interest deduction limit is $750,000 for mortgages taken after December 15, 2017. Consult a tax professional for guidance specific to your situation.
Related Tools & Resources
PMI Calculator
Calculate PMI costs for conventional loans.
What is PMI?
Learn about Private Mortgage Insurance basics.
How to Avoid PMI
Strategies to avoid PMI on conventional loans.
Refinance Calculator
See if refinancing makes sense for you.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. FHA MIP rules can change, and eligibility depends on individual circumstances.
Always consult with a qualified mortgage professional for the most current information and personalized advice.