Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA mortgage insurance
FHA mortgage insurance (MIP) protects lenders and makes 3.5% down loans possible. While it adds to your monthly payment, it's the trade-off that lets Nevada buyers buy homes with minimal savings. Here's the full breakdown.
Upfront: $6,498 (added
to loan)
Monthly: ~$173/month
added to payment
This MIP makes your 3.5% ($13,300) down payment possible.
No credit check • Takes 60 seconds • Clear cost breakdown
Understanding the differences helps Nevada homebuyers choose the right loan
| Feature | FHA MIP | Conventional PMI |
|---|---|---|
| Upfront Cost | 1.75% upfront (can be rolled in) | No upfront cost |
| Monthly Cost | 0.55%-1.05% annually | 0.30%-1.50% (varies by credit) |
| Duration | Life of loan (3.5% down) | Until 20% equity reached |
| Removal | Must refinance to remove | Automatic at 22% equity |
| Credit Score | Same rate regardless of score | Lower scores pay more |
| Best For | Lower credit, smaller down payment | Good credit, larger down payment |
Not sure which loan type is right for you?
Compare FHA vs ConventionalNevada homeowners have limited options to eliminate FHA MIP
Only applies if you put 10% or more down. MIP drops after 11 years. Most Nevada FHA buyers with 3.5% down pay MIP for the life of the loan.
Most common strategy. Once you reach 20% equity and have good credit, refinance into a conventional loan with no mortgage insurance.
Learn about refinancing →MIP ends when you pay off the FHA loan entirely. Aggressive principal payments can help Las Vegas homeowners reach this faster.
See if you qualify to refinance into a conventional loan and eliminate mortgage insurance
Rates vary based on loan term, amount, and down payment percentage
| Loan Term | LTV | Loan Amount | Annual MIP |
|---|---|---|---|
| 15 years or less | ≤90% | All amounts | 0.45% |
| 15 years or less | >90% | All amounts | 0.70% |
| Over 15 years | ≤95% | ≤$726,200 | 0.55% |
| Over 15 years | ≤95% | >$726,200 | 0.75% |
| Over 15 years | >95% | ≤$726,200 | 0.80% |
| Over 15 years | >95% | >$726,200 | 1.05% |
FHA mortgage insurance protects lenders if borrowers default on their loans. Unlike conventional PMI, FHA requires two types of mortgage insurance premiums for Nevada homebuyers.
1.75% of the loan amount, typically rolled into your mortgage. On a $300,000 FHA loan in Las Vegas, that's $5,250 upfront.
0.55% to 1.05% of the loan amount annually, divided into monthly payments. This varies based on loan term, amount, and down payment.