The UFMIP is charged on what type of mortgage loans?

The upfront mortgage insurance premium (UFMIP) is specifically associated with Federal Housing Administration (FHA) loans. This insurance is a required fee that borrowers pay upfront when they take out an FHA loan. It helps protect lenders against losses if the borrower defaults on the loan. FHA loans are designed to help low- to moderate-income borrowers qualify for a mortgage with a lower down payment and more flexible credit requirements compared to conventional loans.

The presence of the UFMIP reflects the FHA's goal of making homeownership more accessible while also ensuring lenders have a measure of protection. Other loan types mentioned, such as GNMA, FNMA, and VA loans, have their own unique requirements and do not involve the UFMIP in the same manner as FHA loans do.