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AMERICAN DREAM DOWNPAYMENT ACT AWAITING PRESIDENT'S SIGNATURE
| Approximately 80,000 low-income families will receive millions in grants over the next two years to help them pay downpayment and closing costs on their first homes under legislation backed by NAR and C.A.R. The American Dream Downpayment Act, H.R. 1276/S. 811, passed its final hurdle in Congress yesterday and now heads to President Bush for his signature. The legislation will provide an average of $5,000 in downpayment and closing cost assistance to help first-time homebuyers with annual incomes that do not exceed 80 percent of the area median income. Grants will be made to state and local governments through HUD's HOME Investment Partnership program. Families interested in applying for grants should contact their state or local housing agency. The American Dream Downpayment Act also will increase Federal Housing Administration (FHA) loan limits for the construction of multifamily housing in high-cost areas like Boston, New York and San Francisco and provides a technical correction to the FHA's Adjustable Rate Mortgage program that will make the product more accessible to consumers. |