Three researchers from the Urban Institute have proposed that a zero-down FHA mortgage may be a more feasible and cost-effective option compared to a national Down Payment Assistance (DPA) program. They argue that the FHA mortgage could provide more flexibility and accessibility for potential homebuyers, particularly those who may struggle to save for a traditional down payment.
Key points from the researchers’ argument include:
– FHA mortgages require no down payment, making them more accessible to lower-income individuals
– A national DPA program may have limitations and restrictions that could hinder its effectiveness in assisting potential homebuyers
– The researchers suggest that the FHA mortgage option could be a valuable alternative for promoting homeownership and reducing barriers to entry in the housing market.
This proposal could spark further discussion and debate within the mortgage industry regarding the most effective strategies for increasing homeownership rates and supporting individuals in achieving their homebuying goals. Keep an eye out for potential policy changes or developments based on this research in the coming months.
You can read this full article at: https://www.housingwire.com/articles/urban-institute-zero-down-fha-mortgages-first-time-homeowners/(subscription required)
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