|  “H.R. 3755 addresses one of the greatest obstacles that prevent many families from becoming home owners — the funds necessary for the downpayment and closing costs. Introduced by Rep. Patrick Tiberi (R-OH), the legislation will help working families, particularly minority households, to achieve the American dream of owning a home by removing this financial barrier,” he said.
The bill would eliminate the statutory requirement for a minimum 3% downpayment for FHA-insured single-family loans for first-time home buyers. To mitigate risk to the FHA’s Mutual Mortgage Insurance Fund, home buyers would be required to pay a 2.25% “upfront” premium on the loan compared to the 1.5% for the FHA’s standard mortgage insurance programs, and 75 instead of 50 basis points for the first five years of the loan. Monthly mortgage payments would be slightly higher than for a regular home and home buyer counseling would be mandatory for all borrowers who participate in the program.  To enhance the legislation to assure that it reaches as many households as possible and extends to all forms of homeownership, Rayburn urged lawmakers to amend the bill to include condominium and cooperative loans.
“In many communities around the country, single-family detached homes are far out of the price range for low- and moderate-income families,” he said. “Condos and co-ops, on the other hand, are within their financial reach and can provide the same wealth-building benefits for families and also bring stability to neighborhoods.” The Department of Housing and Urban Development estimates that 140,000 families would be able to take advantage of this new opportunity and achieve the American dream of homeownership if this legislation is enacted.  “As NAHB president, I have made housing America’s working families — the teachers, police officers, firefighters and other moderate-income workers who represent the heartbeat of any community — a top priority. H.R. 3755 will help to close the housing affordability gap and address our nation’s ‘workforce’ housing problem,” said Rayburn.
Following up on talks held earlier this month with federal lawmakers on such key issues as regulatory restructuring of Fannie Mae and Freddie Mac, homeownership tax credit legislation and environmental reform, Rayburn last week met with House and Senate leaders to discuss action on these concerns and other legislative and regulatory issues affecting the housing industry.  Meetings were conducted with House Minority Whip Steny Hoyer D-MD), Housing and Community Opportunity Subcommittee Chairman Bob Ney (R-OH), House Financial Services Committee Ranking Member Barney Frank (D-MA), Rep. Roger Wicker (R-MS), Senate Banking Committee Ranking Member Paul Sarbanes (D-MD), Senate Minority Whip Harry Reid (D-NV), Sen. Jon Corzine (D-NJ) and Democratic Congressional Campaign Committee Chairman Robert Matsui (D-CA).
To read the zero downpayment mortgage legislation, click here and enter H.R. 3755 in the box at the upper left. 
Photos by Herman Farrer | 
In a busy week promoting the home builders’ housing agenda on Capitol Hill, NAHB President Bobby Rayburn testified before the Congress in support of an important homeownership initiative and continued a series of meetings with top congressional leaders to advance several of the association’s legislative priorities. 