FHA Mortgage Insurance Reduction Comes With Education

A recent decision by the U.S. Department of Housing and Urban Development (HUD) will reduce the costs of the Federal Housing Administration (FHA) mortgage insurance program if the FHA home buyer attends homeownership counseling.

HUD has announced that the upfront mortgage insurance premium, which is charged to people who use FHA to purchase a home, will be cut from 2.25% to 2% of the mortgage amount if the home buyer completes qualified homeownership counseling courses.

A typical FHA-insured loan amount of $80,000 in the past would have paid an $1800 mortgage insurance fee. That amount would now be $1600, a reduction of $200.

This change applies to FHA insured mortgages since September 3, 1996.

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Plaza Real Estate, Inc.
12221 E. Central • Wichita, KS 67206
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Last modified: 10/20/00