The upfront insurance premium charged on FHA-insured mortgages for home purchases will increase from 1 percent to 1.75 percent on April 9, and the annual FHA mortgage insurance premiums will rise by one-tenth of a percentage point.
This affects us here in Nome because the bulk of the loans I see buyers using are the FHA Rural loan, which has a 7% downpayment. A modest 3br home will cost around $200k, which means payments would be approximately $24 more per month IF the borrower includes the upfront charge in the amount financed through a 30-year mortgage.
This could affect a buyer’s debt to income ratio, which is a big factor in loan approval.