(b) ELIGIBLE APPLICANTS.—To be eligible for the 
program established in this Act, an applicant— 
(1) shall have an outstanding balance of prin-
cipal or interest owing on a loan made, insured, or 
guaranteed under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.); 
(2) may not be subject to a judgment secured 
through litigation with respect to such a loan under 
title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.), may not be subject to an order 
for wage garnishment under section 488A of such 
Act (20 U.S.C. 1095a), and at the time of applica-
tion for participation in the program under this sec-
tion— 
(A) such a loan shall be in repayment sta-
tus as determined under section 428(b)(7)(A) 
of such Act (20 U.S.C. 1078(b)(7)(A)); or 
(B) such a loan shall be in a grace period 
preceding repayment; 
(3) may not have owned a home during the 3- 
year period immediately before the applicant pur-
chases an eligible property with assistance provided 
under this Act; 
(4) shall complete a program of counseling with 
respect to the responsibilities and financial manage-
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ment involved in homeownership that is approved by 
the Secretary; 
(5) shall be creditworthy, as determined by the 
Secretary and the Director; 
(6) shall agree to use an eligible property pur-
chased with assistance provided under this Act as 
the applicant’s primary residence for not less than 
the 3-year period beginning on the date of such pur-
chase; and 
(7) shall be employed and earning sufficient in-
come to repay a mortgage loan, as determined by 
the Secretary and the Director for the purposes of 
this program. 
(c) TYPES OF ASSISTANCE.— 
(1) IN GENERAL.—A program established under 
this Act may provide for any one or more of the fol-
lowing options: 
(A) A discount on the appraised value of 
an eligible property. 
(B) Flexibility in underwriting standards 
related to the purchase of eligible properties for 
mortgages insured under title II of the National 
Housing Act (12 U.S.C. 1707 et seq.) or owned 
or guaranteed by the Federal National Mort-
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gage Association or the Federal Home Loan 
Mortgage Corporation. 
(C) The development of new mortgage 
products specifically targeted to eligible appli-
cants. 
(D) In coordination with the Department 
of the Treasury and the Department of Edu-
cation, the development of a program that will 
use actuarial information to determine how the 
repayment of loans described in subsection 
(b)(1) may be integrated into a mortgage re-
payment schedule to allow an eligible applicant 
to accumulate equity in the eligible property, in-
cluding by reason of meeting the eligible appli-
cant’s obligations under such student loan. 
(E) Any other assistance that the Sec-
retary and Director jointly deem appropriate. 
(2) COLLABORATION.—In providing assistance 
described under paragraph (1), the Secretary and 
the Director may collaborate with community banks 
having less than $10,000,000,000 in total assets, 
credit unions (as defined in section 101 of the Fed-
eral Credit Union Act), and local fair housing orga-
nizations. 
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(d) GEOGRAPHICAL DIVERSITY.—In selecting eligible 
applicants to receive assistance under this Act, the Sec-
retary and the Director shall, to the extent practicable, 
consider the location of the eligible property to be pur-
chased by the eligible applicant, including whether the eli-
gible property is located in a rural or urban area, to ensure 
geographic diversity of such eligible properties. 
(e) REPORTS.— 
(1) INTERIM REPORT.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary and the Director shall submit to Congress an 
interim report describing the type of assistance the 
Secretary and the Director shall provide under the 
program established under this Act. 
(2) FINAL REPORT.—Not later than 3 years 
after the date of the enactment of this Act, the Sec-
retary and the Director shall submit to Congress a 
final report evaluating the impact of the program 
carried out under this Act and describing other 
types of assistance the Secretary and the Director 
may offer. 
(f) DEFINITIONS.—In this Act: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
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(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Department of Housing and 
Urban Development. 
(3) ELIGIBLE PROPERTY.—The term ‘‘eligible 
property’’ means a property that is designed as a 
dwelling for occupancy by 1 to 4 families— 
(A) that is safe and habitable, as defined 
by the Secretary and the Director; 
(B) for which, as determined by the Sec-
retary and the Director, the occupancy of which 
will promote community revitalization; and 
(C) that— 
(i) was previously subject to a mort-
gage loan insured by the Federal Housing 
Administration under title II of the Na-
tional Housing Act (12 U.S.C. 1707 et 
seq.) and is owned by the Secretary pursu-
ant to the payment of insurance benefits 
under such Act; or 
(ii) is a real estate owned property of 
the Federal National Mortgage Association 
or the Federal Home Loan Mortgage Cor-
poration. 
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(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as necessary 
to carry out this Act for fiscal years 2018 to 2020. 
Æ 
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