Congressman Garamendi Optimistic President Obama’s New Homeownership Initiative will Help 3rd District Residents
WASHINGTON, DC - Today, Congressman John Garamendi (D-Fairfield, CA), who represents one of the Congressional districts hardest hit by the subprime mortgage housing crisis, praised President Barack Obama’s newly announced initiative to help homeowners.
"I’m glad to see the Administration take these positive steps to help hardworking Americans buy a home. Third District residents should take a close look at this reform and see if it could benefit them," Congressman Garamendi said. "For many families, homeownership is a major step toward financial security. Since 2011, despite my urging, we haven’t seen Congress take real action to repair the housing situation. I hope in this new Congress we can build on today’s initiative and help make the dream of homeownership and affordable housing available to more Americans."
Under the new plan, the Federal Housing Administration (FHA) will reduce annual mortgage insurance premiums by 0.5 percentage point from 1.35 percent to 0.85 percent. For the typical first-time homebuyer, this reduction will translate into a $900 reduction in their annual mortgage payment.
Existing homeowners who refinance into an FHA mortgage will see similar reductions to their mortgage payments as well. In total, this action will help millions of families in America save billions of dollars in mortgage payments in the coming years and it will support the housing market’s recovery. More than 800,000 homeowners are expected to save on their monthly mortgage costs in the first year, and up to 250,000 new homebuyers with sufficient credit will be able to purchase a home within three years.