What does UFMIP stand for in FHA loans?

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Multiple Choice

What does UFMIP stand for in FHA loans?

UFMIP stands for Upfront Mortgage Insurance Premium. In FHA loans, this is a one-time fee paid at closing to insure the loan against borrower default. The premium is typically 1.75% of the loan amount and can be paid at closing or financed into the loan, increasing the amount borrowed. This upfront cost is separate from the ongoing annual mortgage insurance premium, which is paid monthly and depends on the loan amount, term, and LTV. The other options don’t reflect the standard FHA term.

UFMIP stands for Upfront Mortgage Insurance Premium. In FHA loans, this is a one-time fee paid at closing to insure the loan against borrower default. The premium is typically 1.75% of the loan amount and can be paid at closing or financed into the loan, increasing the amount borrowed. This upfront cost is separate from the ongoing annual mortgage insurance premium, which is paid monthly and depends on the loan amount, term, and LTV. The other options don’t reflect the standard FHA term.

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