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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, 12 U.S.C. sections 4901 to 4910. 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. FHA visitors should still use the check. They should not buy a conventional PMI letter.
PMI compared with FHA MIP
| Topic | PMI (conventional) | MIP (FHA) |
|---|---|---|
| Automatic end | 78 percent of original value if you are current | Depends on case date and original loan to value |
| Borrower request | 80 percent of original value, with conditions | Not the HPA 80 percent path |
| Midpoint | Must end at midpoint if you are current | Does not apply |
| Federal law | Homeowners Protection Act | HUD and FHA rules |
Common questions
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Last updated: September 14, 2026