The bill would create a home loan program for eligible first-time, first-generation buyers with low or moderate incomes. The program would use loans insured by the Federal Housing Administration or guaranteed by the Rural Housing Service. The Treasury Department would buy securities backed by these loans. Covered loans must have a fixed interest rate and be for a buyer’s primary home. The program applies to mortgages with case numbers issued by December 31, 2027. The bill generally sets a 20-year loan term, but allows agency officials to set another term to support the program.
Eligible buyers could seek a program loan to purchase a single-family home for use as their main residence. For the Housing and Urban Development program, household income must generally be no more than 120 percent of the area’s median income, or 140 percent in a high-cost area. Buyers must also meet the bill’s first-time and first-generation homebuyer definitions. The Agriculture program uses its existing eligibility rules as well as the bill’s homebuyer definitions. Borrowers would attest to their eligibility; the bill would not require additional documents to prove it.
The bill authorizes Congress to provide whatever amounts are necessary to carry out the program, but does not specify a dollar amount. Funds could support loan costs, Treasury’s purchases of securities, and related administrative expenses.
No publicly available information.
No publicly available information.