FHA LoansMortgage Knowledge

Changes to FHA MI premiums coming soon

FHA TAKES ADDITIONAL STEPS TO BOLSTER CAPITAL RESERVES– New preimum structure is meant to help protect FHA’s MMI fund.


A press release was issued on Monday February 27,2012 by HUD announcing the changes ahead of the Mortgage Letter being issued. This is a recap of that press release.

In an effort to strenghten the FHA Mutual Mortgage Insurance Fund, FHA will be making changes to it’s premium structrue for FHA insured loans

Effective with case numbers assigned on or after  April 1, 2012.Up Front Mortgage Insurance Premium (UFMIP) will increase from 1% to 1.75% of the base loan amount.  The incease applies regardless of the LTV or loan term.  In addition, the annual premium on which the monthly MI figure is calculated will inrease by .10%.


FHA MI premiums

In addition to the changes above, effective with case numbers assigned on or after 6/1/2012, the Annual Premium for mortgages with balances of $625,500 or higher will increase an additional .25%

Feel free to contact me with any questions on this change or any other lending questions you may have.

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