The US House of Representatives has approved a bill that cut the cost of upfront mortgage insurance fees on FHA (Federal Housing Administration) loans for first-time home buyers. The bill still has to pass the Senate.

The bill states that first-time buyers who attend a housing counseling program can qualify for a 25 basis point discount on FHA mortgage insurance loans.

The idea is to improve the financial literacy of first-time buyers and has the support of the Department of Housing and Urban Development.