The Federal Housing Administration plans to increase the cost of up-front mortgage insurance premiums by three-quarters of one percent to restore the agency’s insurance fund that has been depleted by the mortgage crisis. Annual premiums required on the loans will also increase.

Acting FHA Commissioner Carol Galante announced the changes in a statement Monday, saying the moves would restore the health of the agency’s Mutual Mortgage Insurance Fund. “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers,” Galante said.

FHA said the increase in upfront premium from 1 percent to 1.75 percent of the base loan amount will take effect April 1.

The changes in annual mortgage insurance premiums will be staggered, with an increase in the premium for loans under $625,500 increasing by 0.10 percent as of April 1, and the premium for loans above that amount increasing by 0.35 percent as of June 1.

FHA estimates that the increase to the upfront premium will cost new borrowers an average of approximately $5 more per month.

FHA estimates that the changes will add more than $1 billion to the Mutual Mortgage Insurance Fund through Fiscal Year 2013.