FHA MIP Increase

FHA's New Single-Family Premium Structure As required by the Temporary Payroll Tax Cut Continuation Act of 2011, FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for single-family loans under $625,500 and by 0.35 percent for loans above that amount.  Additionally, upfront mortgage insurance premiums (UFMIP) will also increase by 0.75 percent.  Currently the UFMIP is one percent.  The effective date for the 0.10 percent annual MIP increase and the 0.75 percent UFMIP is April 1, 2012.  The effective date for the additional 0.25 percent MIP increase on loans with mortgages exceeding $625,500 is June 1, 2012.  Both dates are based on case numbers assigned. Please click here to review the press release announcing the new changes to the Federal Housing Administration's (FHA) premium structure.