<P> When we talk about canceling the FHA insurance, we talk only about the MMI part of it . Unlike other forms of conventional financed mortgage insurance, the UFMIP on an FHA loan is prorated over a three - year period, meaning should the homeowner refinance or sell during the first three years of the loan, they are entitled to a partial refund of the UFMIP paid at loan inception . If you have financed the UFMIP into the loan, you cannot cancel this part . The insurance premiums on a 30 - year FHA loan which began before 6 / 3 / 2013 must have been paid for at least 5 years . The MMI premium gets terminated automatically once the unpaid principal balance, excluding the upfront premium, reaches 78% of the lower of the initial sales price or appraised value . After 6 / 3 / 2013 for both 30 and 15 - year loan term, the monthly insurance premium must be paid for 11 years if the initial loan to value was 90% or less . For loan to value greater than 90% the insurance premium must now be paid for the entire loan term . </P> <P> A 15 - year FHA mortgage annual insurance premium will be cancelled at 78% loan - to - value ratio regardless of how long the premiums have been paid . The FHA's 78% is based on the initial amortization schedule, and does not take any extra payments or new appraisals into account . For loans begun after 6 / 3 / 2013, the 15 - year FHA insurance premium follows the same rules as 30 - year term (see above .) This is the big difference between PMI and FHA insurance: the termination of FHA premiums can hardly be accelerated . </P> <P> Borrowers who do make additional payments towards an FHA mortgage principal, may take the initiative through their lender to have the insurance terminated using the 78% rule, but not sooner than after 5 years of regular payments for 30 - year loans . PMI termination, however, can be accelerated through extra payments or a new appraisal if the house has appreciated in value . </P> <P> The creation of the Federal Housing Administration successfully increased the size of the housing market . Home ownership increased from 40% in the 1930s to 61% and 65% in 1995 . Homeownership peaked at nearly 69% in 2005, near the peak of the US housing bubble . By 1938 only four years after the beginning of the Federal Housing Association, a house could be purchased for a down payment of only ten percent of the purchase price . The remaining ninety percent was financed by 25 - year, self - amortizing, FHA - insured mortgage loan . After World War II, the FHA helped finance homes for returning veterans and families of soldiers . It has helped with purchases of both single family and multifamily homes . In the 1950s, 1960s, and 1970s, the FHA helped to spark the production of millions of units of privately owned apartments for elderly, handicapped, and lower - income Americans . When the soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA's emergency financing kept cash - strapped properties afloat . In the 1980s, when the economy did not support an increase in homeowners, the FHA helped to steady falling prices, making it possible for potential homeowners to finance when private mortgage insurers pulled out of oil - producing states . </P>

What resulted from the work of the federal housing authority (fha) established in 1934