In July, the House of Representatives passed a bill that allows first-time homebuyers to qualify for a discount on their mortgage insurance plans.
The Housing Financial Literacy Act of 2019 enables first-time homebuyers to take advantage of a 0.25% discount on their mortgage insurance for an FHA loan if they complete a housing counseling program.
Positive Effects of the Bill
If passed by the Senate and passed on to the President, the Housing Financial Literacy Act of 2019 could have numerous positive effects. For instance, first-time homebuyers will receive education on homeowning, which may keep the housing market steady. The more borrowers who are comfortable with the concept of owning and managing homes, the more potential homeowners there are, and therefore, the more activity in the housing market.
Mortgage Experts In Favor
The Mortgage Bankers Association voiced “MBA has long advocated for increased access to housing counseling as a means to provide a more positive experience for first-time homebuyers unfamiliar with the homeownership process, as well as for other underserved communities.”
Politicians in Favor
House Representative Joyce Beatty also expressed support for the bill, citing homeowner education as a prominent benefit.
“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. Studies show that pre-purchase housing counseling equips first-time homebuyers with the much-needed financial skills and tools to make informed financial decisions. These decisions ultimately benefit not only their families but also the surrounding neighborhood and our entire economy,” she said. Beatty went as far as to say the bill will provide opportunity for more Americans to realize the dream of homeownership.”
The Housing Financial Literacy Act of 2019 could enable first-time homebuyers to grasp an understanding of buying and maintaining homes, which may, in turn, help power housing market activity.