Thousands of potential homebuyers without any money for a downpayment would be eligible for government-insured financing under a proposal that will be offered by President Bush in his fiscal 2005 budget.Hailing the "zero-down mortgage" as "the most significant initiation by the Federal Housing Administration in over a decade," federal housing officials said the plan to eliminate the minimum downpayment requirement will remove the single greatest barrier facing potential first-time homebuyers. "Offering FHA mortgages with no downpayment will unlock the door to homeownership for hundreds of thousands of American families, particularly minorities," Alphonso Jackson, acting secretary of the Department of Housing and Urban Development, said in a statement released in Washington. According to HUD's projections, about 150,000 would qualify for the new loan in the first year alone. Normally, the FHA requires a downpayment of 3%-5% of the loan amount. But Federal Housing Commissioner John Weicher said the White House doesn't think those who can afford the monthly payment, but have been unable to save for a downpayment, should be deprived of owning a home. "And under this program, they won't be," he said in announcing the initiative at the National Association of Home Builders' annual convention in Las Vegas.
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The plan that the Federal Housing Finance Agency floated calls for Freddie Mac to actively invest in some new closed-end seconds as cash-out refinancing subsides.
35m ago -
The push comes amid what one expert highlighted as lax funding efforts for two Department of Housing and Urban Development grant programs.
2h ago -
Conventional lending drove volumes higher, particularly in the purchase market, the Mortgage Bankers Association said.
7h ago -
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16 -
In a motion to dismiss UWM's suit, Ramon Walker argues the trademark infringement claim made by UWM is a "pretext to muzzle [his] criticism."
April 16 -
The Federal Reserve chair's comments coincide with the spring meeting of the International Monetary Fund and the World Bank Group in Washington. They also come as groups like the Basel Committee on Banking Supervision are being scrutinized.
April 16