Their governmental status made them exempt from the IRS Ruling, but they are still affected by the HUD Rule Change. One such organization was The Grant America Program, which was conducted by the Penobscot Indian Nation and had been available to all homebuyers in all fifty states. Mortgage insurance All FHA loans require mortgage insurance premium (MIP) irrespective of the size of the mortgage, down payment, and credit score. The FHA employs a two-tiered mortgage insurance premium (MIP) schedule. To obtain mortgage insurance from the Federal Housing Administration, an upfront mortgage insurance premium (UFMIP) equal to 1.75% of the base loan amount at closing is required, and is normally financed into the total loan amount by the lender and paid to FHA on the borrower's behalf. There is also a monthly mortgage insurance premium (MIP) which varies based on the amortization term and loan-to-value ratio. FHA mortgage insurance premium (MIP) can be removed in two cases: first, if the initial loan-to-value ratio was less than or equal to 90%, second, if the FHA loan is refinanced. In the first case, FHA MIP is automatically removed after 11 years on mortgages where the borrower made an initial down payment of equal to or greater than 10% of the home value. In the second case, FHA MIP can be removed if the borrower pays off or refinances the FHA loan into a conventional loan. FHA MIP rates were lowered January 27, 2017 FHA MIP is not cancellable for mortgages originated after June 3, 2013. Starting March 20th, 2023, FHA insured loans have lowered their MIP rates by 30 bps across all scenarios, the most notable loans going from 85 bps down to 55 bps., ensuring affordability for Americans. See also Government-backed loan References External links (Department of Housing and Urban Development) FHA Loan Limit Calculator (City/state/zip loan-limit calculator) FHA Approved Condo Lookup Federal assistance in the United States Insurance in the United States Loans Mortgage industry of the United States Retail financial services United States Department of Housing and Urban Development