FEDERAL HOUSING ADMINISTRATION (FHA) MORTGAGE INSURANCE

A offers a federally-sponsored mortgage insurance program separate from the private mortgage insurance program described above. The FHA program if only offered for loan programs sponsored by FHA, which have regional limits on loan amounts and other restrictions compared to loans available with PMI. Most FHA loans with mortgage insurance require both a payment at loan closing (called “up-front MIP”) and a monthly payment. FHA mortgage insurance also may not be canceled, and may have higher premiums. Still, for some first-time home buyers and those with credit issues, an FHA loan with FHA mortgage insurance may be a viable option.


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