Zero Downpayment Act of 2004

The Zero Downpayment Act of 2004 (H.R. 3755) -- a bipartisan bill supported by NAR and approved by the U.S. House Financial Services Committee -- would allow homebuyers to roll downpayment and closing costs into FHA loans by authorizing the development of the zero-downpayment product for FHA borrowers. Introduced earlier this year by U.S. Rep. Patrick Tiberi (R-Ohio), the initiative was included in President Bush's 2005 budget. The act would require borrowers to meet FHA's underwriting criteria, but their downpayment and closing costs could be rolled into the loan. Borrowers would pay a higher upfront premium, have higher monthly premiums for five years, be required to attend pre-purchase counseling and take on loans that have an interest rate 1/4 percent higher than a traditional FHA loan.

Home Equity Loan

Americans understand that home is where the heart is, but more and more are discovering that home is also where the money is. According to a new consumer survey released today, a projected 23.5 percent of respondents will have secured a home equity loan in 2004 -- double the number who did so in 2003.