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2026 Fee Schedule

FHA FHA MIP

The FHA upfront MIP is a one-time fee charged by the Department of Buyers Affairs to help keep the FHA loan program running. It can be paid at closing or financed into your loan.

2026 FHA Funding Fee Schedule

Loan Type
Down Payment
First Use
Subsequent
Purchase or Cash-Out
3.5% down
1.75%
1.75%
Purchase or Cash-Out
5%+ down
1.50%
1.50%
Purchase or Cash-Out
10%+ down
0.55%
0.55%
FHA Streamline (Streamline Refi)
N/A
0.50%
0.50%
Native American Direct
N/A
0.55%
0.55%
Who Is Exempt from the FHA Upfront MIP?
Buyers with a 10%+ service-connected FHA disability rating
Purple Heart recipients who are on qualified
Surviving spouses of buyers who died in service or from service-connected disability
EXAMPLES

Upfront MIP Examples

$300K Purchase, First Use
$6,450

1.75% × $300,000
Adds ~$38/mo if financed

$400K Purchase, First Use
$8,600

1.75% × $400,000
Adds ~$50/mo if financed

$400K FHA Streamline Refi
$2,000

0.50% × $400,000
Adds ~$12/mo if financed

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FAQ

Upfront MIP Questions

Yes. Most FHA borrowers choose to finance the upfront MIP into their loan rather than paying it upfront at closing. This means it gets added to your loan balance and paid over the life of the loan. On a $400,000 purchase with most borrowers, the 1.75% fee ($8,600) would add approximately $50 per month to your payment.
If you later receive a FHA disability rating that would have exempted you from the fee, you can apply for a retroactive refund. The FHA will refund the upfront MIP once the disability rating is confirmed. Contact the FHA Regional Loan Center to initiate the refund process.
The FHA upfront MIP is a one-time charge (paid at closing or financed), while PMI on conventional loans is an ongoing monthly charge that continues until you reach 20% equity. Even with the upfront MIP financed, FHA loans are typically cheaper than conventional loans with PMI because the fee is spread over 30 years while PMI adds a larger monthly cost.
No. The FHA upfront MIP goes directly to the Department of Buyers Affairs, not to your lender. The fee helps fund the FHA loan program so it remains available for future generations of buyers. Your lender collects the fee at closing and remits it to the FHA.
RELATED

Related Resources

FHA Eligibility RequirementsAll FHA Closing CostsCalculate Your PaymentFHA Purchase LoansFHA Refinance Options
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FAQ

Frequently Asked Questions

For first-time FHA loan use with 3.5% down, the upfront MIP is 1.75% of the loan amount. With 5% down, it drops to 1.5%. With 10%+ down, it's 0.55%. For refinance with 3.5% down, the fee is 3.3%. FHA Streamline refinances have a flat 0.5% fee.

Buyers receiving FHA disability compensation, Purple Heart recipients on qualified, and surviving spouses receiving Dependency and Indemnity Compensation (DIC) are fully exempt. If you believe you qualify for an calculation, Valley West can verify your status during the loan process.

Yes. The FHA upfront MIP can be rolled into the loan amount rather than paid upfront at closing. For example, on a $400,000 loan with a 1.75% fee ($8,600), your total loan amount becomes $408,600. This avoids any additional out-of-pocket cost at closing.

The FHA upfront MIP may be tax deductible as mortgage interest in the year it is paid. Consult a tax professional for guidance specific to your situation. If the fee is financed into the loan, you may deduct it over the life of the loan.

For a FHA Streamline (streamline refinance), the upfront MIP is 0.5% of the loan amount regardless of prior use. For a FHA cash-out refinance, the fee is 1.75% for first use or 3.3% for refinance with 3.5% down.

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