Pay an upfront mortgage insurance premium of 2.25 percent of the total loan amount, up from the current level of 1.75 percent. A borrower taking out a $200,000 mortgage would pay a $4,500 fee, for example, rather than the current fee of $3,500. Borrowers will still be able to wrap these fees into the total amount borrowed. FHA officials also plan to ask Congress to increase the maximum annual premium that FHA can charge.
Principal borrowed: $1000.00
Annual Payments: 12 Total Payments: 360 (30.00 years)
Annual interest rate: 5.00% Periodic interest rate: 0.4167%
Regular Payment amount: $5.37 Final Balloon Payment: $0.00
Annual Debt Service Constant: 6.4440%
Minimum amortizing payment for this Principal and Interest rate: $4.18
Total Repaid: $1933.20
Total Interest Paid: $933.20
Interest as percentage of Principal: 93.320%
Also this raises the yeild curve on the mortgage over the life of the laon, so you can sell the mortgage wholsesale for more money up front.
also your buyer will need will need a credit score of at least 580 to qualify. Many FHA lenders already require a higher score, but there had been no standard requirement across the program. Borrowers with a score lower than 580 will need a down payment of at least 10 percent.
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016
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