Congressman Joe Heck

Representing the 3th District of Nevada
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Heck Introduces Bill to Offer “Second Chance” at Homeownership

Mar 8, 2012
Press Release


Contact: Greg Lemon

FHA program to provide fixed interest rates loans to previously foreclosed on individuals

Nevada Association of REALTORS back Heck bill

WASHINGTON – As part of his continued efforts to reverse the devastating effects of the housing collapse on southern Nevada and the nation, Congressman Joe Heck (R-NV-03) today introduced legislation aimed at giving Americans a second chance at home ownership.  The Second Chance at Homeownership Act  would create a program within the Federal Housing Administration (FHA) to provide 30-year fixed interest rate loans to certain individuals who have experienced a foreclosure or short-sale. Rep. Heck’s legislation provides an opportunity for more Americans to get into homes and stabilize communities.

“We need to do everything we can to help the millions of people who experienced a foreclosure or short sale due to the economic downturn regain their piece of the American dream,” Rep. Heck said. “This bill creates a pathway for people who have lost their home through no fault of their own a second chance at homeownership. Getting more people into homes helps communities and improving the housing market helps the state of Nevada.”

Rep. Heck continued, “This legislation puts appropriate protections in place to ensure that those who are a given a second chance at homeownership can afford their new home by requiring that mortgage payments not exceed the amount the participant has paid for the previous twelve monthly rent payments.”

The introduction of the Second Chance at Homeownership Act is the most recent in a string of policies Rep. Heck has supported aimed at helping Nevadans who have been hit the hardest by the housing crisis. Last year, Rep. Heck voted against terminating the FHA Refinance Program because it has been helpful to Nevadans who are underwater on their mortgages and the Home Affordable Modification Program (HAMP) because the Las Vegas area has been identified as one of the areas with the highest activity rates with regards to participation in this program. 

Blane Johnson, Nevada Association of REALTORS President, expressed his organization’s support for Rep. Heck’s  bill saying, "On behalf of the nearly 14,000 REALTORS in Nevada, we support any effort to help responsible homeowners realize the dream of owning their own home. Given the challenges local homeowners and potential buyers continue to face, this bill can only help our housing market and overall economy."


The Second Chance at Home Ownership Act would create a program within the Federal Housing Administration (FHA) to provide insured loans to individuals who have previously been foreclosed on a 2nd chance at home ownership.

In order to qualify, participants must meet the following requirements:

* Not have owned a residence after January 1, 2011 (with the exception of inherited properties),
* Not been delinquent on rent for at least the previous 12 months,
* Not have been convicted of fraud in the past 10 years,
* Not have a net worth greater than $1 million and
* Not have strategically defaulted on mortgage in the past 10 years.

The second chance mortgage would be subject to the following requirements:

* Maximum loan limit must not exceed what has been established for FHA mortgages for that given time,
* Must be a 30 year fixed mortgage,
* Mortgage payments must not exceed the amount the buyer paid for the past 12 monthly rental payments,
* Buyer must pay a down payment that is equal to 5% of the appraised value of the home and
* Buyer must pay a mortgage insurance premium (MIP) that is equal to an amount that is at least 100 basis points higher than what is charged by FHA at that given time.