FHA Would Consider Zero-Down for Condos

Federal Housing Commissioner John Weicher said Wednesday that his agency is willing to consider a zero-downpayment mortgage for homebuyers who want to buy condominiums and cooperatives.At a hearing on zero-down mortgages, Rep. Bob Ney, R-Ohio, also raised the possibility that the Federal Housing Administration might want to consider insuring loans backed by two- to four-unit properties as well. Mr. Weicher, who was on Capitol Hill to push for FHA zero-downpayment legislation, said his agency is willing to consider insuring condos and co-ops but not necessarily two- to four-family units. The FHA zero-down mortgage is supported by many mortgage and housing groups, but there are concerns. Sheila Crowley, president of the National Low Income Housing Coalition, questioned whether the higher insurance premiums on zero-down loans are warranted. (See the March 29 issue of National Mortgage News for more details on the hearing.)