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HUD No. 23-040
HUD Public Affairs
(202) 708-0685
February 22, 2023


February 22, 2023

The Biden-Harris Administration has remained committed to making homeownership more accessible to American families. As the cornerstone of building wealth, a key factor in fostering economic stability, and a way to close the racial wealth gap, homeownership is a critical milestone for many families.

To this end, the U.S. Department of Housing and Urban Development, through the Federal Housing Administration (FHA), today announces that it will reduce the annual mortgage insurance premiums (annual MIP) it charges homebuyers for its mortgage insurance. This reduction will translate to average annual savings of approximately $800, and even more for those with higher loan amounts. Today’s announcement builds on a range of steps the Department of Housing and Urban Development has taken to make homeownership a reality for more Americans:

  • Today, FHA implements major reductions to the annual premiums it charges homebuyers for mortgage insurance, making homeownership less costly for millions of Americans. The median home price in the United States as of the fourth quarter of 2022 was $467,700, meaning that HUD’s action would save a buyer at this price point more than $1,400 a year. In total, this action will help low- and moderate-income Americans save an estimated $600 million in the next year alone, and many billions over the next decade.
  • In September 2022, to make it easier for first-time homebuyers to qualify for affordable FHA-insured mortgage financing, FHA implemented changes to its underwriting policies to permit lenders to use positive rental history as an additional factor in evaluating an applicant’s creditworthiness for an FHA-insured mortgage. This change makes FHA’s credit evaluation more comprehensive and equitable and supports expanded access to homeownership for first-time homebuyers transitioning from renting.
  • In June 2022, HUD’s Office of Housing launched new online and telephonic search capabilities to significantly increase consumers’ ability to locate and seek assistance from more than 1,500 HUD-approved housing counseling agencies and the 4,000 HUD-certified housing counselors they employ. The tools are used by more than 3,000 consumers on average each day to obtain housing counseling assistance for topics that include homeownership, financial literacy and planning, rental housing, foreclosure avoidance and eviction prevention, reverse mortgages, and housing stability. The telephonic search capability offers translation services in more than 250 languages.
  • In June 2021, FHA announced updates to its student loan monthly payment calculations to remove barriers and provide more access to affordable single-family FHA-insured mortgage financing for creditworthy individuals with student loan debt. The new policy more closely aligns FHA student loan debt calculation policies with other housing agencies by basing the monthly payment on the actual student loan payment, which is often lower, and helps home buyers with student debt to meet minimum eligibility requirements for an FHA-insured mortgage.
  • In November 2022, Secretary Marcia L. Fudge hosted “The HUD House Party,” an innovative program to advertise HUD’s programs to make homeownership attainable and accessible. The program had more than 4,000 viewers across social media and attracted the public to programs like FHA-insured mortgages, housing counseling, and responses to housing discrimination.

To find a housing counselor Search the Map or Search by Zipcode, or call HUD's interactive voice system at: (800) 569-4287. Consumers can also contact a HUD Approved National Housing Counseling Intermediary or State Housing Finance Agency.


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available at www.hud.gov and https://espanol.hud.gov.

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