FHA Mortgage Insurance Premium - Is it Deductable

congress has extended the deductibility of both PMI and MIP through 2010 for certain individuals within income guidelines. Mortgage insurance premium is fully tax deductible for individuals with annual income of up to $50,000; or combined income of $100,000 for couples. If income exceeds these limits, MIP tax deductions are reduced and non-existent for individuals with adjusted income of over $54,500 (or $109,000 for married borrowers).

FHA mortgage insurance (private mortgage insurance, also known as PMI) on your FHA home loan is now tax deductible. This means that now your FHA mortgage insurance can be written off for tax purposes. The Mortgage Insurance Fairness Act provides a good tax deduction from the FHA Mortgage Insurance Premium (MIP). It was originally set to expire but has now been extended .Now qualified borrowers can continue to take the deduction for the amount of their mortgage insurance on their taxes.(Contact your accountant for further information). Qualified borrowers are families with an adjusted gross income of $100,000 or less. Families with incomes up to $109,000 are eligible for a partial deduction. The Act also provides a tax deduction for mortgage insurance premium (MIP) and the Veterans Administration's (VA's) funding fee. The deduction only applies to mortgage contracts that were made for primary, secondary and vacation insured loans. It also includes refinance loans. However, investment loans are not included because the home needs to be a principle residence or a residence for personal use.Should you have any further questions we have a question and answer resource guide on our website www.fhasubmissions.com or reach me toll free at 1-866-936-8478 . Jeffrey Martino Young Essex Mortgage Bank in Santa Rosa,Ca.95404 .