H.R. 10833 — Doorway to the American Dream Act

This section establishes a new FHA mortgage insurance program for first-time homebuyers whose households have annual income below 160 percent of area median income. Mortgages must meet a 96.5 percent loan-to-value ratio, carry an interest rate no higher than 3.5 percent, and have principal obligations capped at the lesser of 115 percent of median area house price or 150 percent of the conforming loan limit under 12 U.S.C. 1454(a)(2), with maturity not exceeding 30 years; the Secretary must also provide monthly interest subsidies that reduce the effective rate to 1 percent for households below 80 percent of area median income and to 1.3125 percent for those between 80 and 90 percent.