Homeowners with an FHA loan will have to fork over about $30 more a month according to federal officials. That’s because the annual mortgage insurance premium, which is broken into monthly payments will increase by one-fourth of a percent. The increase begins on April 18 on new loans, according to reports.

FHA or Federal Housing Administration loans are the most popular type of mortgages. The increase will vary depending on the amount of the loan and the term of the mortgage, but experts estimate the average impact to be about $30 a month. The reason for the increase is to boost capital reserves for the FHA which are currently below the set minimum due to the increase in foreclosures and defaulted loans. Last year the reserves were supposed to be at $18.5 billion, but in reality were only at $4.4 billion, according to a spokesperson for the FHA.

With the monthly increase the agency expects to add an extra $3 billion to its reserves each year. “After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” FHA Commissioner David Stevens told reporters. “This quarter point increase in the annual MIP is a responsible step toward meeting the congressionally-mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”