Lenders Making Changes April 2011   Effective this month, FHA loan borrowers who are putting less than 5% down will have a monthly mortgage insurance premium of 1.15% and those putting 5% or more down will have a 1.10% factor for mortgage insurance.   If you are putting less than 5% down, this is how it would be calculated on a of $400,000:         Purchase Price $400,000       Down Payment $14,000 (3.5%)       Base Loan Amount $386,000       UpFront Mortgage Insurance Premium $3,860 (1.00% - Financed)       Total Loan Amount $389,860   To calculate the Monthly Mortgage Insurance       $386,000 x 1.15% = $4439.00 divided by 12 = $369.92 per month   Also, another change for those buying condos - there is an upcoming deadline June 30th regarding the percent of owner occupation in the complex.  Two years ago FHA lifted it's 30% concentration limit in condo complexes.  It allowed concentrations up  to 50%.  This ends on June 30th, where the limit reverts back to 30%.  This will mean that you will have trouble getting FHA loans on a condo where the complex is less than 50% owner occupied.