Final answer:
FHA premiums are typically handled within the escrow account, where they are managed along with home insurance and property taxes, ensuring timely payments as part of your monthly mortgage.
Step-by-step explanation:
FHA premiums are not included in the origination fee and are not typically handled by the selling agent. Instead, FHA premiums are usually handled within the escrow account. When you have an FHA loan, you will likely pay an upfront mortgage insurance premium (UFMIP) as well as an annual premium, which is divided into monthly payments. These insurance premiums are necessary to protect the lender in case the borrower defaults on the loan. The escrow account managed by a neutral third party facilitates the payment of both your home insurance and property taxes alongside FHA premiums, thus ensuring that these are paid on time as part of your regular monthly mortgage payment.