The House of Representatives passed a bill Tuesday that can cut the cost of upfront mortgage insurance for first-time homebuyers. This bill would affect those obtaining a mortgage backed by the Federal Housing Administration. (an FHA loan)
According to the article from Housing Wire posted below, “The Housing Financial Literacy Act of 2019, or H.R. 2162, stipulates that first-time homebuyers who complete a housing counseling program to learn about sustaining homeownership can get a 25-basis-point discount (0.25%) on their upfront mortgage insurance for an FHA loan.”
The bill will move on to a Senate vote before being able to reach the president’s desk.
❓What is Mortgage Insurance?
It is paid as a cost the day you close on a new home (up front) and as an annual premium. MIP stands for mortgage insurance premium and is required with an FHA loan.
➡️ Read the full article here: https://www.housingwire.com/articles/49525-new-bill-slashes-fha-mortgage-insurance-for-first-time-homebuyers
➡️Follow the bill: https://www.congress.gov/bill/116th-congress/house-bill/2162
To learn more about obtaining a mortgage and purchasing a home, please contact me for a list of local lenders we recommend. Be sure to ask about the Maroney Real Estate First Time Home Buyer meeting!