Discontinuing Monthly Mortgage Insurance Premium Payments

Many homebuyers ask FHA if they can stop paying FHA monthly mortgage insurance premiums with their mortgages.

FHA insures mortgages so that lenders will be encouraged to make more mortgages available for people. The FHA mortgage insurance agreement is between FHA and the mortgage company, so you must contact your mortgage company and ask them what they require to drop the insurance. Most mortgage companies will want you to have a substantial amount of equity in your home.

For new mortgages insured as of January 2001, HUD/FHA has clarified the requirements for removing insurance premiums for some types of mortgages. You may read Mortgagee Letters 2000-38 and 2000-46 (with Attachment) for specific information. Then, contact your mortgage company. HUD cannot remove the insurance premiums for you.