FHA mortgage loans are different. They require a minimum 3.5% down payment for most transactions; borrower credit score issues may require a higher down payment depending on a set of variables including lender requirements and the borrower’s credit history.

FHA mortgage loans don’t require PMI, but they do require an Up Front Mortgage Insurance Premium and a mortgage insurance premium (MIP) to be paid instead. Depending on the terms and conditions of your home loan, most FHA loans today will require MIP for either 11 years or the lifetime of the mortgage.

FHA mortgage insurance is not the same as private mortgage insurance, and borrowers should discuss how FHA mortgage insurance premiums differ from conventional loan PMI if the borrower has concerns.

At one time, FHA loans allowed borrowers to cancel their mortgage insurance premium (MIP) once the Loan-To-Value ratio got to a certain point. But changes in FHA loan regulations eliminates this option unless you put 10% down and then you may eliminate your MIP in 11 yrs.