The Housing Financial Literacy Act of 2025 requires the Federal Housing Administration (FHA) to reduce mortgage insurance premiums for first-time homebuyers who complete an approved financial literacy and housing counseling program before applying for an FHA-insured mortgage. Currently, first-time homebuyers can receive up to a 0.75 percent reduction in their mortgage insurance premium; this bill modifies that benefit to instead offer a 25 basis points (0.25 percent) discount on whatever premium rate the FHA Secretary sets. The bill affects millions of first-time homebuyers seeking FHA-insured mortgages and incentivizes them to participate in housing counseling programs that teach budgeting, credit management, and other financial skills. No specific new funding is appropriated in the text, as the discount would come from adjusting existing FHA premium structures. The counseling program must be completed before a homebuyer signs a mortgage application or sales agreement to qualify for the reduced rate.
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