Congress carves out zero-down mortgages for first responders and teachers

What it does

This bill creates a new FHA mortgage insurance program exclusively for first responders (police, firefighters, paramedics, and teachers) who are first-time homebuyers. It allows eligible first responders to obtain mortgages with zero down payment and no monthly insurance premiums, though they pay an upfront insurance fee (potentially exceeding 3%) collected at closing. The program requires 4 of the last 5 years of first-responder employment, housing counseling, and a commitment to continue in the role for at least 1 year post-closing.

Why we flagged it

The bill's core mechanism is a targeted mortgage insurance subsidy (zero down, no monthly premiums) for a defined occupational class. It is functionally a public-sector workforce benefit, not a general housing affordability measure, and operates through FHA insurance rather than direct cash subsidy.

What the text implies

• The upfront insurance premium (potentially >3%) is collected at closing and may be rolled into the mortgage principal, effectively increasing the total loan amount and long-term borrower cost despite zero-down framing.
• Program expires after 5 years unless reauthorized, creating uncertainty for first responders planning long-term homeownership and potential cliff-effect if Congress does not renew.
• FHA Mutual Mortgage Insurance Fund bears actuarial risk; if first-responder default rates exceed projections, costs may be absorbed by the broader FHA insurance pool, potentially affecting premiums for non-first-responder borrowers.
• Definition of 'first responder' includes teachers, expanding the program beyond traditional emergency-response roles; this broadens the beneficiary class but may dilute the occupational-risk rationale.
• No explicit income caps or geographic targeting; program may benefit higher-income first responders in expensive markets more than lower-income responders in affordable areas.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The program directly lowers barriers to homeownership for a defined public-service workforce (police, firefighters, paramedics, teachers) by eliminating down-payment and monthly insurance requirements. While the upfront premium may be substantial, the zero-down structure materially expands access to home equity for workers in essential public roles, with no apparent subsidy to private lenders or hidden cost-shifting to other borrowers.

Who stands to gain

• FHA mortgage insurance fund (receives upfront premiums)
• Mortgage lenders and servicers (originate and service zero-down mortgages with reduced credit-risk e
• Real estate and title industries (increased transaction volume from expanded first-responder homeown

Named in the bill

FHA (Federal Housing Administration), HUD (Department of Housing and Urban Development), Mutual Mortgage Insurance Fund, First responders (law enforcement, firefighters, paramedics, teachers), State and local governments, Tribal governments, Mortgage lenders, Housing counseling agencies

Where it stands

27 cosponsors: 18 Democrats, 9 Republicans.

• Mar 12, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Mar 12, 2025 — Referred to Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

6 lobbying clients named this bill on 11 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $2,410,304 in lobbying spend. A filing names 31 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 82% of bills with at least one filing.

Ashley Moody, the sponsor, reported $2,315,100 in PAC receipts in the 2026 cycle.

• Mortgage Bankers Association — $1,220,000 on 1 filing
• American Ambulance Association — $650,000 on 2 filings
• International Association of Fire Fighters — $380,304 on 2 filings
• Peace Officers Research Association of California — $100,000 on 2 filings
• International Union of Police Associations AFL-CIO — $40,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.