According to the Urban Institute, a zero-down Federal Housing Administration (FHA) mortgage could be a more viable option than existing downpayment assistance programs for boosting homeownership.
The Urban Institute's research found that a significant portion of renters, approximately 15 million households, possess sufficient income to afford FHA-insured homes, indicating down payment is the primary barrier.
Compared to down payment assistance programs, a zero-down FHA mortgage option presents less inflationary risk, as it does not cause direct shifts in housing demand like large grants do.
The FHA remains the only federally backed mortgage program requiring a down payment, even though it predominantly serves first-time homebuyers, particularly among families of color.
Collection
[
|
...
]