“Minnesotans who choose the FHA to achieve their dream of homeownership are unfairly punished by outdated rules,” said Phillips. “Once equity thresholds have been met, FHA borrowers should be treated the same as private borrowers. That's why I'm proud to introduce this bill, which would help homeowners save for the future.”
As a result of this “life of loan” policy, FHA borrowers often pay far more in mortgage insurance premiums over the loan term than non-FHA borrowers. This practice disproportionately affects low- and moderate-income borrowers, first-time homebuyers and minority buyers.
The FHA's justification for the change in its policy was that it was consistent with its efforts to strengthen the
Minnesota REALTORS, an association of more than 22,000 realtors throughout
“The Minnesota REALTORS supports
The bill has also been endorsed by the