Guide
PMI vs MIP: conventional insurance versus FHA insurance
Compare private mortgage insurance on conventional loans with FHA mortgage insurance premiums, including which federal rules apply and how cancellation differs.
Different products, different rules
PMI is issued by private insurers on conventional loans and is governed in part by the Homeowners Protection Act. MIP is FHA insurance. It has its own duration rules that changed in a major way on June 3, 2013.
Why this mix up is costly
Homeowners with FHA loans sometimes send an HPA cancellation letter and get a denial because HPA does not control MIP. Homeowners with conventional loans sometimes assume PMI lasts for life, the way many post 2013 FHA premiums do. Matching the letter to the loan type matters.
How Cancel PMI handles both
The eligibility check asks for loan type first. Conventional loans are scored against HPA. FHA loans are scored against MIP duration rules. VA and USDA loans are flagged as not PMI. The packet language follows that result.
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