For those who don’t know, this is how FHA supposedly works:
Mutual Mortgage Insurance Fund:
Government sponsored mortgage insurance administered by the Federal Housing Administration which insures mortgage loans on one- to four-family residential housing. The plan is designed to be self-funding, the FHA collects premiums from mortgagors and pays lender claims on losses from mortgage defaults. Borrowers pay a one time premium or MIP which is a part of the monthly payment. Maybe some of those big 6% seller contributions go to that?
