HUD wants new era of homeownership

Potential homeowners could be given more assistance from an improvement in homeownership programs.

HUD secretary Dr Ben Carson has highlighted possible improvements to programs in a speech to a meeting of the National Association of Realtors and said that he wants to bring in a new era of homeownership.

"It's important to be able to learn from success and from failure," Carson said. "That's what wisdom is all about."

The NAR has been pushing for improvements to homeownership programs including how condos are treated. The association wants a change to the rules to make it easier to get FHA financing for condos.

"I can assure you that this rule has very high priority," Carson said. "I think it will make a big difference to a lot of Americans."

NAR president William E. Brown says that easing the purchase of condos is is vital to the operation of the US housing market.

"Condominiums are an affordable option that many young and first-time buyers look to when they start their home search, but using an FHA loan to buy a condo is still a real challenge," said Brown. "Finishing work on the condo rule would offer some much-needed clarity and relief."

The NAR also wants an end to the ‘life-of-mortgage’ insurance requirements for FHA loans, to enable homeowners to cancel the policy when they reach 20% equity, as is usually the case with conventional loans. It is also calling for the FHA mortgage insurance premium cut to be reinstated.