FHA Home Mortgage Loan Interest Rates

One Response to “Question about UFMIP and tax deductions?”

1. Afakasi says:

   June 7, 2009 at 11:14 pm

   They included in on the 1098 because 2008 is the year in which the amount was paid. It will not appear on future 1098's. Since the full amount is not deductible in 2008, you must calculate how much is deductible this year and in each subsequent year and claim the deduction each year that it is allowed. According to the IRS's website, the calculation is:

   Question 2: I paid a lump-sum premium in 2008 that also covers years after 2008. How do I figure my deduction?

   Answer: If you paid a lump-sum premium for insurance provided by FHA or a private mortgage insurer that also covers years after 2008, you must determine the part of the premium that pays for insurance for 2008 by dividing the total premium by the stated term (number of months) of your mortgage, or 84 months, whichever is shorter. Multiply that amount by the number of months during 2008 that your home was covered by the mortgage insurance. Enter the amount allocated to 2008 in the worksheet for Schedule A, Line 13, to figure your deduction for 2008. You figure your deduction in later years based on the amounts allocated to those years. If your mortgage is satisfied before the end of your allocation period, you cannot deduct the amounts that are allocated to periods after the mortgage is satisfied.
   If you paid a lump-sum premium for insurance provided by VA or Rural Housing, commonly known as a funding fee and guaranty fee respectively, no allocation is necessary, and you figure your deduction for 2008 based on the full amount of the payment. Enter the full amount in the worksheet for Schedule A, Line 13, to figure your deduction.

Recent Posts:

Related results on Question about UFMIP and tax deductions?

1. Taylor Bean & Whitaker Mortgage Interest and FHA UFMIP 1098 | FHA ...

   So, if you got a new FHA, VA or USDA loan during 2009 and Taylor Bean and Whitaker was the lender, you may not have all of your deductible interest reported on your Form 1098 from Bank of America or other lender that took over servicing of your loan when HUD closed TBW. I hope this information helps with your ... Popular Searches. First-Time Home Buyer $8000 Tax Credit; FHA Frequently Asked Questions; FHA Down Payment Assistance Grants; FHA Mortgage Rates; FHA Loan Limits ...

1. Question About Ufmip And Tax Deductions?

   I bought a home with an FHA loan in 2008 and paid UFMIP at closing. On the 1098 from the lender, the amount of the UFMIP is listed as a mortgage insurance premium in Box 4. The way I understand it from the tax guides, I can only deduct ...

1. Frequently Asked Question: Which is Better: An FHA Mortgage with 5 ...

   With FHA, you will have an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of the loan amount, but that can be rolled into the loan. So, your FHA loan will be $96662. Both loans will have a monthly mortgage insurance premium. .... Back in the fall when the federal tax credit for homebuyers was extended and expanded, the A... http://bit.ly/ckxBaC 1 day ago; Short Term Direction of Mortgage Rates Dependent Upon Auctions and Stocks: http://tinyurl.com/ybdw3dw 1 day ago ...