HR2094-119

What This Bill Does

The HELPER Act creates a special FHA mortgage insurance program for first responders and teachers. Eligible mortgagors must be first-time homebuyers who complete HUD-approved housing counseling, attest that they are full-time law enforcement officers, firefighters, paramedics, emergency medical technicians, or full-time pre-K through grade 12 teachers, have served as a first responder for at least four of the previous five years or were released due to an occupation-connected disability, be in good standing and not on probation or under investigation for terminable conduct, intend in good faith to continue for at least one year after closing, and have never used the program before. Covered mortgages can finance purchase or repair of a one-family principal residence, a condominium unit, or a manufactured home permanently affixed to owned real property. FHA may insure up to 100 percent of appraised value with no cash down payment. The Secretary sets an upfront insurance premium that may exceed 3 percent and can adjust it based on performance and market conditions, but the mortgage cannot carry a monthly insurance premium. The program is authorized at $660,000 for fiscal year 2026 and $160,000 annually for fiscal years 2027 through 2032, and new commitments expire five years after the Secretary first makes insurance available.

Who Benefits and How

First responders benefit from access to FHA-insured mortgages with no down payment and no monthly insurance premium. Full-time teachers benefit from the same first-time homebuyer mortgage program if they serve pre-K through grade 12 students. Manufactured home buyers benefit because eligible principal residences include titled real-property manufactured homes and lots. Local communities benefit if first responders and teachers can afford homes in the areas they serve.

Who Bears the Burden and How

HUD and FHA must establish underwriting, premium, risk, counseling, service-verification, and actuarial requirements. Mortgage lenders must verify first responder or teacher eligibility, counseling completion, good standing, and first-time homebuyer status. The Mutual Mortgage Insurance Fund bears loan performance risk from 100 percent loan-to-value mortgages. Applicants must meet employment, service, good-standing, counseling, intent-to-continue, and one-time-use conditions.

Key Provisions

• Creates an FHA mortgage insurance program for first-time homebuyer first responders and teachers.
• Authorizes up to 100 percent appraised-value mortgages with no cash down payment.
• Bars monthly insurance premiums while allowing an adjustable upfront premium that may exceed three percent.
• Requires housing counseling, four-of-five-year service or disability release, good standing, and intent to continue service.
• Authorizes fiscal year 2026 through 2032 funding and ends new commitments after five years.