Because the MIP is charged, the FHA can allow a purchaser to reduce their initial out of pocket cash expenditure from 5% to 3% of the purchase price, making it possible for many more Americans to buy homes. HUD reports in their mission statement that home ownership for the majority of Americans is their goal and that has proven to be the driving force behind their decisions and directives since their inception.
The MIP is pooled with all the other premiums and allows the Federal Government to continue helping homebuyers save money on their homes by keeping the costs down for homebuyers.
Most importantly to you, since youíre on USHUD.com, the MIP paid by all the prior home owners allows HUD to sell the foreclosed inventory presented on USHUD.com at a substantial discount.
Each property has itís own financing options. For the best information on a purchase strategy for the particular property you are interested in, visit website: USHUD.com