NCSHA Comments to HUD on Improving FHA’s Homeownership Programs

The Federal Housing Administration (FHA) plays an indispensable role in helping low-income families and other traditionally under-served populations achieve the dream of homeownership. FHA’s support for sustainable low down payment lending dovetails perfectly with HFAs’ affordable homeownership missions.

In recent years, nearly three-quarters of HFA loans were insured by FHA. As government entities, HFAs are authorized to provide down payment assistance in connection with FHA mortgages. This is crucial because one of the biggest impediments to purchasing a home for otherwise responsible borrowers is the cost of affording a heavy down payment.

NCSHA recommends that HUD consider the following changes to FHA policies and guidelines to improve FHA’s ability to support affordable homeownership.