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The intention of MIP (Home loan Insurance premium) is to try to render even more defense for the financial in the eventuality of standard to your financing. MIP is actually a yearly percentage into a good HUD mortgage, paid down from the closing and you may annually. Having HUD 223(f) finance, MIP is actually twenty five basis circumstances getting characteristics having fun with a green MIP Avoidance, 65 base points to have field price characteristics, 45 base situations for Point 8 or the latest currency LIHTC characteristics, and you can 70 foundation things for Point 220 metropolitan restoration tactics you to definitely are not Area 8 or LIHTC. To own HUD 232 loans, MIP are step 1% of loan amount (owed on closure) and you may 0.65% annually (escrowed month-to-month).

MIP (Home loan Top) will cost you are different depending on the financing program. Continue reading “What is the purpose of MIP (Mortgage Premium)?”