Beginning after April 18, 2011 an additional 0.25% fee will be added monthly to FHA loans. This increase was deemed necessary by the FHA in order to increase their reserve funds to the required 2% level which are currently not being met. However, this is the third such recent increase and while it will not impact existing borrowers with FHA loans, all new borrowers after its enactment will be subject to the new fee. For a median priced home purchase this is anticipated to add just over $30 a month to their payment. There was no change to the upfront MIP which will remain at 1.0%.
