FHA mortgage insurance is a type of insurance backed by the Federal Housing Administration (FHA). It's designed to protect lenders from default risk on FHA loans.
FHA mortgage insurance premiums are required for all borrowers who take out an FHA loan, regardless of the amount of down payment they make. With other mortgage types, such as conventional loans, MIP goes away after you own 20% equity in the home. The mortgage insurance premium can be paid in a lump sum or it can be rolled into the loan and paid over time.