FHA premium changes take effect Sept. 7

Upfront payment dialed back, but annual premiums increasing

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Upfront premiums for FHA mortgage insurance will be dialed back from 2.25 percent to 1.25 percent on Sept. 7, while annual premiums will nearly double, Federal Housing Commissioner David Stevens announced Thursday.

The changes follow Wednesday’s passage of legislation raising the statutory limit on annual premiums from 0.55 percent to 1.55 percent.