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HR 7755

Housing for Our Hometown Heroes Act

119th Congress Introduced by Tom Barrett

HUD must study and report on a zero-down FHA mortgage option for first-time buyers who are first responders or teachers, including feasibility, costs, and alternatives.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 7755

Summary of H.R. 7755 — Housing for Our Hometown Heroes Act (119th Congress)

Purpose and Intent

  • The bill, titled the “Housing for Our Hometown Heroes Act,” seeks to explore the feasibility of exempting certain first-time homebuyers from any cash downpayment requirement for FHA mortgage insurance. Specifically, it targets first-time buyers who are first responders or school teachers.
  • It directs the Department of Housing and Urban Development (HUD) to study whether a zero-downpayment option could be offered for FHA mortgage insurance and to report findings to Congress.

Key Provisions

Section 2. Report on Zero-Down Payment for FHA Mortgage Insurance

  • Requirement: Not later than 180 days after enactment, HUD (acting through the Assistant Secretary for Housing and Federal Housing Commissioner) must submit a congressional report on the feasibility of a zero-downpayment program for FHA mortgage insurance for first-time homebuyers who are first responders or school teachers.
  • What the report must cover:
    1. Benefits and drawbacks of such a program.
    2. The cost to the program and its impact on the Mutual Mortgage Insurance (MMI) Fund.
    3. How the program could remain solvent, including:
      • Use of upfront fees, or
      • A combination of upfront and annual fees.
    4. How the program would affect the ability of target buyers to purchase a home.
    5. Expected premiums required for the program to avoid a negative credit subsidy rate.
    6. If the program is deemed not feasible, recommendations for alternative designs or solutions to support first-time buyers who are first responders or school teachers.

Section 2, Subsection (b)—Consultation

  • HUD must consult with the Department of Veterans Affairs (VA) regarding the report, including potential incorporation of elements from the VA Home Loan Program into the proposed program.

Section 2, Subsection (c)—Definitions

  • First Responder: A person who is:
    • Employed full-time by a law enforcement agency or a firefighting/EMS unit at the Federal, State, Tribal, or local government level; and
    • Active in roles such as sworn law enforcement or firefighting/EMS, including responsibilities like supervising offenders or handling criminal charges.
  • School Teacher: A full-time teacher employed by a State-accredited school providing direct services to students in pre-K through 12th grade.

Affected Parties and Scope

  • Primary beneficiaries considered in the study: First-time homebuyers who are first responders or school teachers.
  • Institutions involved: HUD (and the FHA program under the National Housing Act), with coordination from the VA for potential integration of VA program elements.
  • Financial considerations: The study emphasizes impacts on the MMI Fund, program solvency, and potential fee structures (upfront and/or annual) necessary to sustain a zero-down option.

Procedural and Timeline Aspects

  • Enactment timeline: The report is due within 180 days of enactment.
  • Process: After the study, Congress would have the information needed to determine whether to pursue a zero-down FHA mortgage insurance option or to pursue alternative approaches.

Potential Impact

  • If feasible, the bill could broaden access to homeownership for eligible first responders and teachers by reducing or eliminating the cash downpayment required for FHA mortgage insurance.
  • The analysis would quantify trade-offs, including effects on the MMI Fund, premium levels, and program sustainability.
  • The bill does not itself implement a zero-down program; it requires a formal HUD report with recommendations and possible alternative designs.

Summary

H.R. 7755 seeks to authorize a HUD-mandated study to assess the viability of exempting the downpayment (cash investment) for FHA mortgage insurance for first-time buyers who are first responders or school teachers. It requires a detailed feasibility report within 180 days, including cost, solvency, fee structures, impacts on homeownership access, and potential lessons from the VA Home Loan Program. If infeasible, the bill calls for alternative options to support these frontline workers in purchasing homes.

Compiled from official sources — confirm details with the bill’s official record.

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