FHA fee increases start April 1st

Just a tidbit for those folks anywhere in the country that are thinking of buying a property using an FHA loan.  As of April 1st those loans are going to be more expensive, so it may be worth acting now if you are making a purchase in the next 6 months or so.  

The below is excerpted from Jill Hartman at Premier Mortgage Group Fort Collins-

I wanted you to be aware that FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent (from 1.15% to 1.25%) for loans under $625,500.  Upfront premiums (UFMIP) will also increase by 0.75 percent.  The UFMIP will be increased from 1 percent to 1.75 percent of the base loan amount.  This increase applies regardless of the amortization term or LTV ratio.  FHA will continue to permit financing of this charge into the mortgage.  This is quite a significant increase and is effective April 1, 2012 which means your lender must assign a case number before April 1^st in order to use the current, lower amount.

Here is a link to the press release from the FHA:


http://portal.hud.gov/hudportal/HUD?src=%2Fpress%2Fpress_releases_media_advisories%2F2012%2FHUDNo.12-037