The Urban Institute issued a statement in support of lifting a ban preventing lenders from providing down payment assistance to Federal Housing Administration (FHA) borrowers. The decision would provide significant improvements to underserved borrowers attempting to purchase homes and achieve homeownership. The Urban Institute estimates that lifting the ban would help 411,000 borrowers become homeowners by 2020 and that providing assistance would help financially strain borrowers make down payments of 3-5%. Furthermore, the Institute expects that overall quality of home loan underwriting will improve with an adapted FHA policy.
Key points:
• Urban Institute supports lifting FHA ban of lenders providing down payment assistance
• 411,000 borrowers would reach homeownership by 2020 with ban lifted
• Down payment assistance would range from 3-5% of loan value
• Improved quality of home loan underwriting expected with adapted policy
You can read this full article at: https://www.housingwire.com/articles/lift-the-ban-on-lenders-providing-down-payment-assistance-on-fha-loans-ted-tozer/(subscription required)
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