For most first-time homebuyers, buying a home is the biggest (and most expensive!) purchase of their life. Not only do buyers need to consider the purchase price, but they also need to budget for all the additional expenses that come along with buying a house, from closing costs to mortgage fees. But if proposed legislation gets passed, it looks like at least one of those costs might be going away—making the process of purchasing a home a bit more affordable for first-time homebuyers.
According to a recent article in Realtor Magazine, the US House of Representatives recently approved a bill—The Housing Financial Literacy Act of 2019, H.R. 2162—that would cut mortgage insurance fees on FHA loans for first-time homebuyers. In order to qualify, potential homeowners would need to complete a housing counseling program (certified by the Department of Housing and Urban Development) to improve their financial literacy and educate them on sustaining homeownership. In exchange, they would receive a 25-basis-point discount on their mortgage insurance loan.
The bill still needs to be approved by the Senate, but if it passes it could make buying a home more affordable for first-time buyers—and help you save in upfront costs when you purchase your first home.