[Congressional Record Volume 150, Number 104 (Tuesday, September 7, 2004)]
[Senate]
[Pages S8863-S8864]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS--THURSDAY, JULY 
                                22, 2004

      By Mr. SMITH:
  S. 2753. A bill to authorize the Secretary of Housing and Urban 
Development to insure zero-downpayment mortgages; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. SMITH. Mr. President, I rise today to further the cause of 
affordable homeownership in America. I am proud of all that we have 
done to increase opportunities for homeownership, however I hope that 
no member of this body makes the mistake of believing

[[Page S8864]]

that the fight is over. I am very proud of the 68.6 percent rate of 
homeownership we enjoy in America today but millions of American 
families are unable to take advantage of the many benefits of 
homeownership. One of the greatest obstacles for these Americans is the 
minimum down payment. The Federal Housing Administration (FHA) provides 
loans to many 1st time homebuyers who otherwise would struggle to 
qualify, yet many working class families are still overwhelmed at the 
prospect of saving thousands of dollars for the 3 percent minimum down 
payment. This legislation will help make homeownership become a reality 
for those Americans.
  The Zero Downpayment Act of 2004 will allow families who seek FHA-
insured loans to include the downpayment in their loan amount. These 
borrowers will still have to meet FHA credit qualifications and will 
pay a slightly higher annual interest rate to cover the cost of the 
program. Borrowers will also be required to receive counseling to 
ensure they are ready for the financial responsibilities associated 
with homeownership. This legislation provides a wonderful opportunity 
for those Americans who are on the edge of homeownership to begin 
building better lives and neighborhoods all over the country.
  As members of the United States Senate we each spend a good amount of 
time meeting with people of all walks of life. I am introducing this 
legislation today, because it can change lives, and give people a 
chance to experience a better life. I hope my colleagues will join me 
in the fight to give every American the opportunity to become a 
homeowner. The Zero Downpayment Act of 2004 is an important step in 
that process and I urge my colleagues to join me in supporting this 
legislation. I ask unanimous consent that the bill be printed 
immediately following my remarks.

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