To amend section 203 of the National Housing Act to reduce the down payment required by a first-time homebuyer purchasing a home with a mortgage insured under such section.

March 5, 2001

Mr. LAFALCE introduced the following bill; which was referred to the Committee on Financial Services

To amend section 203 of the National Housing Act to reduce the down payment required by a first-time homebuyer purchasing a home with a mortgage insured under such section.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `FHA First-Time Homebuyer Act'.

SEC. 2. REDUCED DOWNPAYMENT REQUIREMENTS FOR FIRST-TIME HOMEBUYERS.

(a) IN GENERAL- Section 203(b)(10) of the National Housing Act (12 U.S.C. 1709(b)) is amended--

(1) by redesignating subparagraph (B) as subparagraph (C); and

(2) by inserting after subparagraph (A) the following new subparagraph:

`(B) REDUCED CLOSING COSTS FOR FIRST-TIME HOMEBUYERS- In the case of any mortgage for which the mortgagor is a first-time homebuyer who has completed a counseling program described in subsection (c)(2)(A), the amount of the mortgage premium paid at the time the mortgage is insured shall be considered to be, for purposes of subparagraph (A)(i), the maximum premium amount authorized to be established under the first sentence of subparagraph (A) of subsection (c)(2).'.

END