WASHINGTON - The House Financial Services Subcommittee onHousing and Community Opportunity, chaired by Rep. Robert Ney(R-Ohio) will consider the "Zero Downpayment Act" at a hearingscheduled for March 24. Introduced by Rep. Patrick Tiberi (R-Ohio)in February, H.R. 3755 would eliminate the downpayment requirementfor families and individuals who purchase homes with FederalHousing Authority (FHA) insured mortgages. In introducing his bill,Tiberi said the measure "will unlock the door to homeownership forhundreds of thousands of American families, particularlyminorities. Those who can afford the monthly payment, but have beenunable to save for a downpayment, should not be deprived ofhomeownership." According to projections by the Department ofHousing and Urban Development, about 150,000 households wouldqualify for the new loans in the first year. Families that qualifyfor the zero downpayment mortgages would be charged a modestlyhigher insurance premium on their home loans than regular FHAborrowers. According to a release from Ney's office, this higherpremium would completely cover the costs of the program,eliminating any cost to taxpayers. H.R. 3755 complements theAmerican Dream Downpayment Act which was signed into law byPresident Bush in December 2003 and gives downpayment assistance to40,000 Americans annually. "During the enactment of the AmericanDream Downpayment Act last year, we learned that the biggestobstacle to homeownership for most families is the inability tocome up with enough cash to meet downpayment and closing costs.Minority families in particular are burdened by high downpaymentrequirements," said Ney.