Quick answer: To remove FHA mortgage insurance, you have three paths: automatic removal after 11 years if you put 10% or more down, refinancing into a conventional loan once your balance is at or below ~80% of your home's value, or paying off the loan. With less than 10% down, today's FHA MIP otherwise lasts the life of the loan.
FHA gets you in the door — MIP is the rent you pay until you leave. Here's exactly when MIP drops off on its own, when refinancing wins, what the math looks like, and the refund rule that applies if you go FHA-to-FHA. (For what MIP costs in the first place, start with our complete FHA mortgage insurance guide.)
Key takeaways
- 10%+ down: annual MIP cancels automatically after 11 years. Less than 10% down: it runs the life of the loan — no request removes it.
- The main exit is a conventional refinance at ~80% LTV — no mortgage insurance at all, and Las Vegas appreciation often gets borrowers there faster than the amortization schedule does.
- Refinance FHA-to-FHA within 3 years and HUD credits a prorated refund of your upfront premium toward the new loan.
- Older loans (before June 3, 2013) follow legacy rules: MIP can cancel at 78% LTV after 5+ years.
- FHAFHA loans in Las Vegas: requirements and limitsDown payment, credit floor, and the 2026 Clark County picture.
Three ways to remove FHA mortgage insurance
| Path | Requirement | What you end up with |
|---|---|---|
| Automatic cancellation | 10%+ original down payment, 11 years of payments | Same FHA loan, no annual MIP |
| Conventional refinance | ~80% LTV or better on current value | New loan, no mortgage insurance |
| Payoff or sale | Loan paid in full | Done — MIP ends with the loan |
When does MIP cancel automatically?
The dividing line is your original down payment. Put 10% or more down and annual MIP ends automatically after 11 years — no request, no appraisal. Put less than 10% down (the typical 3.5% FHA buyer) and MIP is attached for the life of the loan: your servicer cannot remove it no matter how much equity you build. That's not a mistake on your statement; it's the rule for all FHA loans originated since June 3, 2013.
If your loan is older than June 3, 2013, legacy rules apply: annual MIP cancels once you reach 78% LTV on the original amortization schedule with at least 5 years of payments. If that's you, call your servicer — some legacy borrowers are still paying MIP they could have dropped.
The refinance exit: how most people actually drop MIP
Once your balance is at or below roughly 80% of your home's current value, a conventional refinance carries no mortgage insurance at all. The equity math has two engines — your payments and your home's appreciation — and in most Las Vegas neighborhoods, appreciation does the heavy lifting.
Bought at $420,000 with 3.5% down in 2023; loan balance now ≈ $390,000.
If the home now appraises at $490,000: $390,000 ÷ $490,000 = ≈ 80% LTV — conventional refinance, no MI
MIP saved at 0.55%: ≈ $179/month — about $2,150/year
Whether the refinance wins overall depends on how your new conventional rate compares to your FHA rate — that's the side-by-side we run. Check today's rates.
Valley West takeDon't wait for exactly 80%. Between 80% and 95% LTV, a conventional refinance with credit-priced PMI can still beat FHA MIP for strong-credit borrowers — PMI at 740+ is often far cheaper than 0.55% flat, and it cancels at 20% equity without another refinance. The trigger to call us isn't an LTV number; it's your credit score improving since you closed FHA. That's when the math moves.
Do you get a UFMIP refund when you refinance?
If you refinance into another FHA loan within 3 years of closing, HUD credits a prorated refund of the 1.75% upfront premium you already paid toward the new loan's upfront premium. The refund shrinks every month and hits zero at 36 months — so an FHA streamline in year one or two captures real money. Refinancing to conventional does not come with a UFMIP refund; the trade is that you're leaving mortgage insurance behind entirely.
Find out if you can drop MIP this year.
We'll estimate your current LTV, price the conventional refinance against your FHA loan, and tell you plainly whether the math works now or what it needs to work later. No obligation.
Get your fast quoteMIP removal FAQ
How do I remove FHA mortgage insurance?
Automatic cancellation after 11 years (10%+ down only), a conventional refinance at ~80% LTV, or paying off the loan. With less than 10% down, today's FHA MIP otherwise lasts the life of the loan.
Can my servicer remove MIP if I request it?
No — for FHA loans since June 3, 2013 with under 10% down, there is no request-based removal. The refinance is the exit.
My loan is from before June 2013 — different rules?
Yes. Legacy loans can cancel MIP at 78% LTV on the original schedule after at least 5 years. Call your servicer and ask where you stand.
Do I get upfront premium money back when I refinance?
Only FHA-to-FHA within 3 years: HUD prorates a refund of your original 1.75% toward the new loan's UFMIP. Conventional refinances get no refund.
How much does dropping MIP save?
Roughly $183/month on a $400,000 balance at the 0.55% rate — about $2,200 a year, as an illustrative example. Your actual savings depend on your balance and new rate.
The bottom line
MIP is the price of FHA's easy entry, not a life sentence. Know your lane: 10%+ down borrowers just wait out the 11 years; everyone else watches two numbers — home value and credit score — and refinances when they line up. Have us run the check once a year; it costs nothing and the month the math flips is worth catching.
Sources
- HUD — FHA Single Family Housing Policy Handbook 4000.1, Annual MIP duration table: hud.gov
- HUD — Mortgagee Letter 2013-04 (MIP duration for loans on/after June 3, 2013): hud.gov
- HUD — UFMIP refund schedule (FHA-to-FHA refinances within 3 years): entp.hud.gov
Across Valley West: Weighing the refinance exit? Start on our FHA loan site or price the conventional side at ConventionalHomeLoans.services.
Keep reading
Last updated: July 17, 2026 — repurposed from the February 2023 pricing-update announcement into the MIP-removal guide; rules verified against HUD Handbook 4000.1.
