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i. Mortgage Insurance Premiums (04/29/2024)
FHA collects a one-time IMIP and an annual insurance premium, also referred to as the monthly Mortgage Insurance Premium (MIP), which is collected in monthly installments.
i. Initial Mortgage Insurance Premium
(A) Definition
Late Charges refer to charges assessed if the IMIP payment is received more than twenty Days after the Closing Date.
(B) Standard
The IMIP is the responsibility of the Borrower and must be financed or paid in cash by the Borrower. Any amount not paid in cash must be financed. Any IMIP amount paid in cash is added to the total cash requirements due at closing.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages
4. Underwriting the Property
Mortgagees may pay a portion or the full amount of IMIP on behalf of the Borrower.
(1) Initial Mortgage Insurance Premium Payment Due Date
The Mortgagee must remit the IMIP within 15 Days of the Closing Date and as a condition of endorsement. See IMIP Late Charge and Interest for additional information.
(2) Initial Mortgage Insurance Premium Amount
FHA charges an IMIP of 2 percent of the MCA.
The IMIP must be financed or paid in cash by the Borrower or Mortgagee. The Borrower and/or Mortgagee may pay a portion or the full amount of the IMIP. Any amount not paid in cash must be financed. Any IMIP amounts paid in cash are added to the total cash requirements due at closing.
See the Initial Mortgage Insurance Premium Amount section in the HECM for Purchase product sheet.
ii. Annual Mortgage Insurance Premium
The annual MIP is payable monthly. FHA charges an annual MIP of 0.50 percent on the outstanding mortgage balance. The amount of the annual MIP will begin to accrue on the outstanding mortgage balance from the Closing Date.