Buyer News: The FHA has increased the MIP (mortgage insurance premium) on FHA loans. The upfront MIP is going from 1.0% to 1.75%. The monthly amount will increase 1.1% to 1.25%. This is effective April 1, 2012, so buyers must be in-contract prior to then to receive the current rates.
This will effect what buyers can afford slightly. For example, on a $100k loan the upfront MIP will go from $1000 to $1750 and the monthly increase will be $14/month. It doesn't make a huge difference on a $100k loan but as you get up in price, it does.
Learn more about the MIP increase, other FHA news and related articles, here.