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Reps. Aguilar, Amodei introduce FHA Fairness Act

November 11, 2021

U.S. Reps. Pete Aguilar (D-CA) and Mark Amodei (R-NV) introduced legislation designed to help homebuyers access higher loan limits on low-interest housing loans.

The FHA Fairness Act would increase loan limits in some regions by altering how the Federal Housing Administration (FHA) loan guarantee program determines loan limits. Currently, loan limits are determined through a formula that accounts for home values in a given metropolitan statistical area (MSA). This bill adjusts that formula to account for areas where home values can vary widely.

“Rising housing costs in our region are boxing out too many families from homeownership, which is why FHA loans are such an important tool,” Aguilar said. “Giving Inland Empire residents access to higher FHA loan limits means expanding opportunities for homeownership. These low-interest loans are tools to help make this dream an affordable reality for so many families across the country, and this bill will allow more Americans to utilize them. I look forward to seeing this bill advance through the House.”

Both Aguilar and Amodei serve on the House Appropriations Committee. Aguilar also serves on the House Appropriations Transportation, Housing and Urban Development subcommittee, which oversees funding for federal housing policy.

“During a time when we’re seeing record high housing prices across the country, I’m excited to introduce legislation that makes homeownership more attainable across the country and in our own backyard. This simple formula fix will allow low- and middle-income Americans in high-cost areas to better access the Federal Housing Administration (FHA) loan guarantee program,” Amodei said.

The legislation has the support of the California Association of Realtors.

“The FHA Fairness Act is important because it looks to address the harm caused to communities who saw severe cuts in the availability of FHA financing back in 2014. By increasing the FHA loan limits in these communities, the FHA Fairness Act will expand the availability of safe and affordable mortgages to California households trying to purchase a home,” California Association of Realtors President Dave Walsh said.