Funding fee is one-time and typically rolled into the loan. No PMI — ever.
Estimated PMI Rate (Annual %)
%
PMI only applies under 20% down. Typical range: 0.5%–1.5%. Cancels at 20% equity.
FHA Upfront MIP: 1.75% of base loan amount, always rolled into the loan. Annual MIP (paid monthly):
• 10%+ down → 0.50%/yr — cancels automatically after 11 years
• Less than 10% down → 0.55%/yr — required for the life of the loan
Min. 3.5% down payment required for FHA financing.
USDA Upfront Guarantee Fee: 1.0% of base loan, rolled into the loan. Annual Guarantee Fee: 0.35% of loan balance, paid monthly — this is not PMI.
No down payment required. Property must be in a USDA-eligible rural or suburban area.
