S.Amdt. 4320

This amendment aims to add a new FHA Mortgage Insurance Program for Mortgages for First Responders to section 203 of the National Housing Act. Its purpose is to provide specific mortgage insurance options for eligible first responders who are first-time homebuyers.

Key Changes and Additions

• Eligible First Responders: The amendment defines first responders as individuals employed full-time in the following roles:

  • Law enforcement officers for Federal, State, Tribal, or local governments.
  • Firefighters, paramedics, or emergency medical technicians for Federal, State, Tribal, or local governments.
  • Teachers in State-accredited public or private schools serving grades pre-kindergarten through 12.

• Mortgage Benefits: The program allows for:

  • Mortgages that can be up to 100 percent of the property's appraised value.
  • No requirement for the buyer to make a down payment in cash or its equivalent.
  • A prohibition on monthly insurance premiums.

• Usage Restrictions: Loans must be used to purchase or repair a 1-family residence (including condominiums) or a manufactured home permanently affixed to a lot, provided it serves as the buyer's principal residence.

• Requirements for Borrowers: To qualify, the mortgagor must:

  • Be a first-time homebuyer.
  • Complete an approved housing counseling program.
  • Have been a first responder for at least 4 of the 5 years before applying, or have been released from such employment due to an occupation-connected disability.
  • Be in good standing and intend to stay a first responder for at least one year after closing.
  • Have never used this specific program before.

• Funding and Duration: The amendment authorizes $660,000 for fiscal year 2027 and $160,000 for each fiscal year from 2028 through 2033. The authority to make new insurance commitments expires 5 years after the program begins.