FHA mortgage insurance vs. PMI for Florida buyers: what FHA's MIP costs in 2026, how long it lasts, when conventional PMI comes off, and a $300,000 condo example
October 31, 2026 · Zach Curtis, REALTOR®, Realty Hub
Short answer: an FHA loan has two mortgage insurance charges. There's an upfront premium of 1.75% of the base loan, plus an annual premium of 0.50% to 0.55% for most 30-year loans in our price range. With less than 10% down, the annual premium lasts for the life of the loan. Conventional PMI is priced by the lender and insurer, but federal rules let you request removal at 80% of your home's original value and require automatic removal at 78%.
FHA's mortgage insurance premium (MIP)
HUD's current premium schedule comes from Mortgagee Letter 2023-05 (HUD ML 2023-05):
- Upfront MIP is 1.75% of the base loan amount on most FHA purchase loans.
- The annual MIP for loans longer than 15 years with a base loan of $726,200 or less, the threshold in HUD's table, is shown below.
| Your down payment (loan-to-value) | Annual MIP | How long it lasts |
|---|---|---|
| 10% or more (LTV 90% or less) | 0.50% | 11 years |
| 5% to under 10% (LTV over 90% to 95%) | 0.50% | Life of the loan |
| Under 5%, such as FHA's 3.5% minimum (LTV over 95%) | 0.55% | Life of the loan |
Loans above that threshold carry 0.70% to 0.75%. HUD says the annual MIP is calculated on your outstanding balance and is typically paid in 12 monthly installments with your mortgage payment, and that the rates apply to condominiums too (HUD press release 23-041). FHA lets qualified buyers put as little as 3.5% down (HUD: FHA loans). Confirm current premiums with your lender, since HUD can change them.
A $300,000 condo example
- 3.5% down: the base loan is $289,500. Upfront MIP is $5,066.25. Annual MIP at 0.55% starts around $1,592 a year, roughly $133 a month, and runs for the life of the loan.
- 10% down: the base loan is $270,000. Upfront MIP is $4,725. Annual MIP at 0.50% starts at $1,350 a year, $112.50 a month, and ends after 11 years.
The annual amount falls a little each year as you pay the balance down. Ask your lender whether the upfront premium will be added to the loan or paid at closing, since that changes your cash to close and your payment. Remember the building has to qualify too; see how to check if a condo is FHA-approved and the 2026 FHA loan limits.
Conventional PMI and when it comes off
The CFPB notes that mortgage insurance is typically required on a conventional loan when your down payment is under 20% (CFPB). For most conventional loans on a principal residence, federal rules give you these rights (CFPB: removing PMI):
- Request removal when your balance is scheduled to reach 80% of the home's original value, or earlier if extra payments get you there. You'll need a written request, a solid payment history, no junior liens, and possibly evidence the value hasn't dropped.
- Automatic removal when the balance is scheduled to reach 78%, as long as you're current.
- Final cutoff the month after the midpoint of the loan term, which is 15 years on a 30-year loan.
"Original value" generally means the lower of the purchase price and the appraised value at purchase. The CFPB notes FHA and VA loans follow different rules, and Fannie Mae and Freddie Mac may allow earlier cancellation under their own guidelines.
How to compare the two
- Ask two or three lenders for Loan Estimates on both FHA and conventional for the same price and down payment. Compare the monthly mortgage insurance, the upfront costs and the rate together; see Loan Estimate vs. Closing Disclosure.
- Think about how long you'll keep the loan. Life-of-loan MIP matters more the longer you hold it.
- Check the building first. A condo that isn't FHA-approved or doesn't meet Fannie Mae's project standards narrows your choices; see non-warrantable condos.
- Look at help with the down payment; see Broward down payment assistance and Hometown Heroes.
For your full budget, see condo down payments and buying with lower credit. Browse Hallandale Beach, Hollywood, Dania Beach, West Park or Aventura, then start at Ready to buy.
Zach Curtis, Realtor, Realty Hub, license SL3664129. Equal Housing Opportunity. General information, not legal, tax, insurance or lending advice. Figures are illustrations, not quotes; your lender sets your actual terms.
Questions? Ask Zach
I'm Zach Curtis, a REALTOR® with Realty Hub in Hallandale Beach. I help renters and buyers in Hallandale Beach, Hollywood, Aventura and nearby. Zach replies personally within 15 minutes, 8 AM to 9 PM ET, 7 days. Outside those hours, by 9 AM.
Questions
How much is FHA mortgage insurance in 2026?
Under HUD Mortgagee Letter 2023-05, the upfront premium is 1.75% of the base loan, and the annual premium on most 30-year loans of $726,200 or less is 0.50% (with 5% or more down) or 0.55% (with less than 5% down).
How long does FHA MIP last?
With 10% or more down (LTV 90% or less), annual MIP lasts 11 years on loans over 15 years. With less than 10% down, it lasts for the life of the loan.
When does PMI come off a conventional loan?
You can request removal when your balance is scheduled to reach 80% of the original value, and it must end automatically at 78% or the month after the loan's midpoint, if you're current.
What is the FHA mortgage insurance on a $300,000 condo with 3.5% down?
Upfront MIP is about $5,066 on a $289,500 base loan, and annual MIP at 0.55% starts around $1,592 a year, roughly $133 a month.
Is FHA or conventional better for a condo?
It depends on your down payment, credit, how long you'll keep the loan and whether the building qualifies for each. Compare Loan Estimates for both on the same unit.
Sources
Published October 31, 2026 by Zach Curtis, REALTOR®, Realty Hub, license SL3664129. General information for South Florida, not legal, tax, insurance or lending advice. Laws, programs and prices change; check the official sources above, and ask a Florida attorney, CPA, insurance agent or lender about your situation. Listing numbers are asking prices and rents from BeachesMLS on the date shown. Equal Housing Opportunity. Zach Curtis and Realty Hub follow federal, Florida and Broward County fair housing law. Every listing is open to everyone. We never steer anyone by race, color, religion, sex, national origin, disability, familial status, age, sexual orientation, gender identity, or any other protected class.