Tina Smith: “I rise today to further the cause of affordable homeownership in America. I am proud of all that we have done to…”

“I rise today to further the cause of affordable homeownership in America. I am proud of all that we have done to increase opportunities for homeownership, however I hope that no member of this body makes the mistake of believing that the fight is over. I am very proud of the 68.6 percent rate of homeownership we enjoy in America today but millions of American families are unable to take advantage of the many benefits of homeownership. One of the greatest obstacles for these Americans is the minimum down payment. The Federal Housing Administration (FHA) provides loans to many 1st time homebuyers who otherwise would struggle to qualify, yet many working class families are still overwhelmed at the prospect of saving thousands of dollars for the 3 percent minimum down payment. This legislation will help make homeownership become a reality for those Americans. The Zero Downpayment Act of 2004 will allow families who seek FHA-insured loans to include the downpayment in their loan amount. These borrowers will still have to meet FHA credit qualifications and will pay a slightly higher annual interest rate to cover the cost of the program. Borrowers will also be required to receive counseling to ensure they are ready for the financial responsibilities associated with homeownership. This legislation provides a wonderful opportunity for those Americans who are on the edge of homeownership to begin building better lives and neighborhoods all over the country.”