Skip to content
Subscriber Only

Trump’s Housing Agency Cracks Down on Zero-Down Home Loans

  • U.S. worries about risk to $1.3 trillion in federal mortgages
  • Measure may target national program run through Indian band
Stapleton housing and development nears the end with building of the North End neighborhood.
Photographer: Helen H. Richardson/Denver Post
Updated on

The Trump Administration is cracking down on national affordable housing programs because of concern over growing risk to the government’s almost $1.3 trillion portfolio of federally insured mortgages.

The effort targets providers of money for borrowers who can’t afford the 3.5 percent down payment typically required on Federal Housing Administration loans. Such help -- from government agencies and families -- enables 4 in 10 FHA loans. Borrowers in government down-payment assistance programs become delinquent at about twice the rate of those who put up their own money.