Question:

What is Mutual Mortgage Insurance Fund?

Answer:

The Mutual Mortgage Insurance Fund (MMIF) is one of the government-sponsored mortgage insurance funds. The Federal Housing Administration (FHA) insures loans for 1- to 4-unit family housing and collects mortgage insurance premium (MIP) from borrowers taking out FHA-insured loans.

The MMIF is the largest of FHA/HUD operated mortgage insurance funds. The others are: the General Insurance Fund (GIF), the Special Risk Insurance Fund (SRIF) and the Cooperative Management Housing Insurance Fund (CMHIF).

Through those Insurance Funds HUD provides insurance for mortgages on single and multifamily units, manufactured homes, and certain health care facilities.

All borrowers taking FHA-insured loans have to pay mortgage insurance premium (MIP) - it is charged both as an upfront cost upon closing the loan and on a monthly basis. The MIP is partially refundable if the loan was repaid in the early years. This is how the Mutual Mortgage Insurance Fund (MMIF) is self-sustainable, unlike the second largest FHA Insurance Fund - the GIF.

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