Insurance required on FHA loans. Consists of an upfront premium (1.75% of loan amount, usually financed) and an annual premium (currently 0.55% for most borrowers, paid monthly). For FHA loans with less than 10% down, MIP lasts the life of the loan. For 10%+ down, MIP drops off after 11 years.
Definition reviewed by Renzo Johnson, Licensed MLO, NMLS #PENDING. Last updated February 2026.