Is an Upfront Mortgage Insurance Premium collected on a loan having a very low loan to value ratio?

Most FHA mortgage insurance programs require the payment of Upfront Mortgage Insurance Premium (UFMIP), which may be financed into the mortgage.

Indian Lands (Section 248) do not require a UFMIP.

The UFMIP is not considered when calculating the area-based Nationwide Mortgage Limits and LTV limits.

For more information see Handbook 4000.1 II.A.2.e.i and Appendix 1.0 - Mortgage Insurance Premiums available at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03019