FHA Premiums Are Going to Increase. The Federal Housing Administration (FHA) is raising annual mortgage insurance premiums by an additional .25% on new 15 and 30 yr loans after April 18, 2011. For 30 year loans this means the total premium will now be 1.15% from .9% if the Loan to Value ratio is higher than 95%.
FHA is Lowering The Maximum Loan Amount. The maximum amount that can be insured by Fannie, Freddie or the FHA is scheduled to drop to $625,500 on Oct 1, 2011 from $729,750. This means less people in states with high property values will be able to obtain affordable FHA loans.