The U.S. Department of Housing and Urban Development said it is proposing a new program that will allow eligible borrowers to obtain Federal Housing Administration mortgages with no money down.
The proposal, part of HUD's fiscal year budget request, would eliminate the statutory requirement of a minimum 3% down payment for FHA-insured single-family mortgages for first-time homebuyers. For those that choose to participate in the "zero downpayment" mortgage program HUD would charge a modestly higher insurance premium which would be phased in over several years, and would also require participating families to undergo pre-purchase housing counseling.
