Q. I bought my home in 2014 using FHA with 3.5% down. How can I remove the MIP?
A. Unfortunately, in your case the only way to remove the mortgage insurance premium (MIP) is to refinance out of FHA. In 2013, the FHA changed its position and instituted the life of loan policy, meaning borrowers must pay MIP through the duration of the loan if their loan to value (LTV) is over 90%. You may recall prior to 2013, FHA borrowers were able to remove MIP when their LTV reached 78%. There is a bill in Congress that would eliminate the life of loan policy and return to the equity requirements for MIP removal. However, if you can’t wait for a decision on the bill, please reach out if you need the name of good local lender who can help you refinance.