21 Nov FHA Offers First-Time Homebuyers Discounted Loans for Taking Class
MCT-Home loans are about to go on the discount rack for first-time buyers willing to spend a few hours learning the ropes of homeownership, from applying for a mortgage to choosing a contractor for a kitchen remodel.
The Homeowners Armed with Knowledge program, or HAWK, was announced by the Federal Housing Administration last month as a way for homebuyers to cut their mortgage insurance premium costs by attending housing counseling classes. The idea is that the more borrowers understand about homeownership, the less likely they are to default on their loans, reducing the risk for FHA.
Borrowers who take the classes, which include several courses before and after closing, can save an average of $325 a year, or nearly $10,000 over the life of the loan.
“It may not seem like it, but $10,000 is a lot of savings for a $30,000-a year household, ” said Kimber White, state government affairs chairman for the Florida Association of Mortgage Professionals. “It can make the difference between qualifying or not qualifying to buy a home.”
The classes will be taught by agencies approved by the U.S. Department of Housing and Urban Development. To find housing counseling agencies in your area, go to HUD.gov.
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