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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

FHA recently announced an increase to the Annual Mortgage Insurance Premium on standard California FHA loan programs. This is a second increase in less than 6 months. FHA earlier increased Annual Mortgage Insurance Premium in October 2010.

**The information to this post has been updated. Read our complete guide for FHA mortgage insurance premium for the latest information. Click here to go to that post.**

Here are the 6 things you need to know about these changes:

  1. These changes are effective April 18th, 2011.
  2. The Annual Insurance Premium will increase .25% for standard forward mortgages. The Upfront Mortgage Insurance remains at 1.00%.
  3. The Annual Premium is now 1.15% for LTVs GREATER than 95% on 30 year loans.
  4. The Annual Premium is now 1.10% for LTVs EQUAL to or LESS than 95% on 30 year loans.
  5. The Annual Premium is now .50% for LTVs GREATER than 90% on 15 year loans.
  6. The Annual Premium is now .25% for LTVs EQUAL to or LESS than 90% on 15 year loans.

The chart below will further illustrate the new changes to California FHA Mortgage Insurance Premium and the impact to you as a Home Buyer.
FHA Annual Mortgage Insurance Premium (MIP)

As you can see, the changes will result in making an FHA Loan more expensive to buy or refinance a California Home using FHA loans. If you are considering buying a home, it may be a good idea to get into contract before April 18, 2011 and save yourself .25% of loan amount every year (for at least 5 years).

To read the FHA Mortgagee Letter 11-10 which talks about the change to California FHA Annual Mortgage Insurance Premium in its entirety, click here.