The FHA Monthly Mortgage Insurance Premium increases on all applicable loans beginning with casefile ID numbers issued on or after April 18, 2011. The increase from .9% on loans higher than 95% loan to value will represent about a $35 monthly increase in cost of ownership on loan amounts with a $180,000 pre-UFMIP (Upfront Mortgage Insurance Premium) added in. The addition of the UFMIP of 1% brings the financed amount to $181,800.
Borrowers should still be able to qualify for the loan unless their debt-to-income ratio is already marginal due to other expenses and their level of income. Increases are also impacting other FHA loans (see the chart) but does not affect conventional loans.
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