This bill adds a new FHA mortgage insurance program for first responders to section 203 of the National Housing Act. It defines first responders to include certain full-time law enforcement officers, full-time firefighters, paramedics, emergency medical technicians, and full-time pre-K through 12 teachers. The program lets the Secretary insure mortgages for eligible mortgagors to buy or repair a 1-family principal residence (including certain condominium units and manufactured homes permanently affixed and titled as real property).
For first-time homebuyers, the Secretary may insure mortgages up to 100% of appraised value so the buyer would not be required to make a cash down payment. Mortgages under the program are subject to an up-front insurance premium (collected at closing). That up-front premium may exceed 3 percent and can be adjusted by the Secretary. Mortgages insured under this subsection may not be subject to a monthly insurance premium.
Eligible mortgagors must be first-time homebuyers, complete Secretary-approved housing counseling, attest to qualifying first responder employment (generally having worked at least 4 of the previous 5 years, or released due to an occupation-connected disability), be in good standing, intend to continue as a first responder for at least one year after closing, and meet underwriting and actuarial requirements set by the Secretary. The Secretary may set other requirements to protect the Mutual Mortgage Insurance Fund and may commit to insure mortgages before execution or disbursement.
The bill authorizes appropriations of $660,000 for fiscal year 2026 and $160,000 for each fiscal year 2027 through 2032 to carry out the program. The authority to enter new commitments under the program expires five years after the Secretary first makes insurance available.
No publicly available information.
No publicly available information.