To follow the established rules for the required reserve requirement of the Mutual Insurance Fund, FHA will increase the annual mortgage insurance premium (MIP).
The increase of .25% (25bp) was announced. To avoid this increase you must have your case number assigned on or before April 14, 2011.
FHA recently increased the annual MIP to .85% – .90% but reduced the upfront mortgage insurance to 1%. On April 18th the new annual MIP structure will be as follows:
30 Year
- 5% down or more will increase from 85bp to 110bp
- Less than 5% down will increase from 90bp to 115bp
15 Year
- 10% down or more will increase from 0 to 25bp
- Less than 10% down will increase from 25bp to 50bp
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