Final answer:
The UFMIP for an FHA loan of $116,000 cannot be determined without the current FHA UFMIP rate, which is not provided in the question. Buyers should consult their lender or review up-to-date FHA guidelines to obtain this rate and calculate the premium.
Step-by-step explanation:
The question relates to calculating the Upfront Mortgage Insurance Premium (UFMIP) for a home purchased with an FHA loan amounting to $116,000. To determine the UFMIP, one needs to know the appropriate rate for calculating the insurance premium based on the loan amount. Unfortunately, the provided information does not specify the exact UFMIP rates applicable to the loan amounts given.
Generally, FHA loans require a UFMIP, which is typically a percentage of the loan amount. This percentage varies over time and is set by the FHA. The borrower pays this premium either at closing or it can be financed into the loan amount. Since we do not have the specific percentage, we cannot provide the exact UFMIP for a $116,000 loan. For an accurate UFMIP calculation, additional information on the current FHA UFMIP rates is required. Potential home buyers should consult with their lender or refer to the latest FHA guidelines for updated rates.