Minnesota Mortgage Blog

 FHA announced February 14th 2011 they will raise the annual mortgage insurance premiums which is known as the FHA monthly mortgage insurance. These changes were anounced in Mortgagee Letter 11-10 and become effective with case numbers on or after April 18th, 2011. The amount of the increase will be .25 basis points. 

Up Front MIP -100bps                               Annual Premium for Loans Greater than 15 Years LTV              Through 4/17/2011*  On/After 4/18/2011** ≤ 95.00 %       85 bps                  110 bps > 95.00 %       90 bps                  115 bps

Up Front MIP -100bps                               Annual Premium for Loans 15 Years or Less LTV            Through 4/17/2011*    On/After 4/18/2011** = 90.00 %       None                     25 bps > 90.00 %       25  bps                  50 bps

For case numbers assigned on/before April 17, 2011 *

For case numbers assigned on/after April 18, 2011**

FHA is doing this because they need to strengthen the Mutual Mortgage Insurance Fund or MMIF as it is called. They want to see the fund financially stable. There has been no change mentioned in regards to the 3.5% down payment or the Upfront Mortgage Insurance Premium of 1 percent.

If you have any questions regarding these changes. Please feel free to contact me.

Jamie Larkin