The premium notice has a reference to first-time homebuyers who receive pre-purchase counseling. What does this mean?
It means that if the borrower is otherwise eligible, and is a first-time homebuyer who has received pre-purchase homeownership counseling, that the maximum upfront premium is not to exceed 2.00%. Thus, borrowers falling into the 2.25% premium cell, if otherwise eligible for FHA insured financing, would pay only 2.00% upfront if they are first-time homebuyers who received pre-purchase counseling prior to execution of the sales contract.
