decrease in downpayment requirements

decrease in downpayment requirements Sec. 304. (a) Section 203(b)(2) of the National Housing Act is amended— (1) by striking out, in clause (i) of the first sentence, all the parenthetical language which begins “(but, in any case”; (2) by striking out clauses (ii) and (iii) in the first and second sentences and inserting in lieu thereof in each sentence “and (ii) 95 per centum of such value in excess of $25,000.”; and (3) by inserting immediately after the second sentence the following: “Notwithstanding any other provision of this section, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, such mortgage shall not exceed 90 per centum of the entire appraised value of the property as of the date the mortgage is accepted for insurance, unless the dwelling was completed more than one year prior to the application for mortgage insurance, or the dwelling was approved for guaranty, insurance, or a direct loan under chapter 37 of title 38, United States Code, prior to the beginning of construction.”. (b) Section 220(d)(3)(A)(i) of such Act is amended— (1) by striking out the comma at the end of clause (1) and all of clauses (2) and (3) in the matter preceding the first proviso and inserting in lieu thereof “and (2) 95 per centum of such value in excess of $25,000”; and (2) by striking out in the second proviso the comma at the end of clause (1) and all of clauses (2) and (3) and inserting in lieu thereof “and (2) 95 per centum of such value in excess of $25,000”. (c) Section 222(b)(3) of such Act is amended by striking out clauses (ii) and (iii) and inserting in lieu thereof “and (ii) 95 per centum of such value in excess of $25,000;”. (d) The third sentence of section 234(c) of such Act is amended by striking out clauses (A)(ii) and (A)(iii) and inserting in lieu thereof “and (ii) 95 per centum of such value in excess of $25,000,”.