Buying a home is expensive, buying a home for the first time is overwhelming and the costs can be surprising and cause some to think twice before signing the papers. There is good news for first time home buyers; they may be able to save some money when purchasing a home. Specifically, some may be able to qualify 25 basis-point discount on the FHA mortgage insurance.
The Housing Financial Literacy Act of 2019 passed in the House of Representatives earlier in July. This bill’s purpose is to encourage first time homeowners to complete a program to educate them on the home buying and home ownership experience in order to promote sustainable homeownership. Buyers that complete this training could qualify for the discount, but the bill needs to pass the Senate’s vote and move on for presidential approval.
According to an article published by HousingWire.com, although some experts are concerned the discount could have a negative impact the FHA’s insurance fund, many agree that promoting education about home buying and ownership is vital in helping more American’s have a positive homeownership experience.
“Whether you are managing your credit, creating a budget, saving for retirement, or purchasing a home, understanding the basic principles of planning, saving, and investing for the future is vitally important,” Rep. Joyce Beatty, D-OH, who presented the bill, said. “Studies show that pre-purchase housing counseling equips first-time homebuyers with the much-needed financial skills and tools to make informed financial decisions that ultimately benefit not only their families, but also the surrounding neighborhood and our entire economy.”
Read the entire article.