What is the percentage of the up-front mortgage insurance premium (UFMIP) required for an FHA loan?

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The up-front mortgage insurance premium (UFMIP) for an FHA loan is set at 1.75% of the loan amount. This requirement is crucial for FHA loans as it helps protect lenders against losses that may occur if a borrower defaults on their mortgage. The UFMIP can be rolled into the loan amount or paid upfront at the time of closing. Understanding this percentage is essential for potential borrowers as it affects the overall cost of obtaining an FHA loan and influences their financial planning. This rate is periodically reviewed and updated by the Federal Housing Administration, but as of the current guidelines, the correct percentage remains at 1.75%.