A bill to reform the single family housing loan guarantee program under the Housing Act of 1949.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Ownership Made Easier Act'' or 
the ``HOME Act''.

SEC. 2. SINGLE FAMILY HOUSING LOAN GUARANTEE PROGRAM.

    Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is 
amended--
            (1) by amending paragraph (3) to read as follows:
            ``(3) Income limits for eligible borrowers.--To be eligible 
        to receive a guaranteed loan pursuant to this subsection, the 
        income of a borrower--
                    ``(A) shall not exceed the current 4-person 
                household limit, as defined by the Secretary, for a 
                borrower living in a 1 to 4 person household;
                    ``(B) shall not exceed the current 8-person 
                household limit, as defined by the Secretary, for a 
                borrower living in a 5 to 8 person household; and
                    ``(C) shall not exceed the current household limits 
                for households greater than 8 persons, as defined by 
                the Secretary, for a borrower living in a household of 
                more than 8 persons.'';
            (2) in paragraph (4)--
                    (A) in subparagraph (A) by inserting ``and'' after 
                the semicolon;
                    (B) by striking subparagraph (B);
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (D) in subparagraph (B), as so redesignated, by 
                striking the period and inserting the following 
                ``having a population of not more than 40,000.'';
            (3) in paragraph (8), by striking ``1 percent'' and 
        inserting ``2 percent'';
            (4) by amending paragraph (9) to read as follows:
            ``(9) Refinancing.--
                    ``(A) In general.--Any loan guaranteed under this 
                subsection or any loan not guaranteed under this 
                section, but which is owed by an individual who would 
                qualify as an eligible borrower under paragraph (3) on 
                a residence that would qualify under paragraph (4), may 
                be refinanced or extended for any of the following 
                purposes:
                            ``(i) To pay off any other loan (including 
                        a first or second purchase mortgage) not made 
                        or guaranteed under this section.
                            ``(ii) To repair mechanical or structural 
                        deficiencies to the residence of the borrower, 
                        provided that such repairs are made under the 
                        supervision of an eligible lender, as that term 
                        is defined in paragraph (6).
                            ``(iii) To pay for closing costs as may be 
                        authorized by the Secretary, which shall 
                        include a discount not to exceed 200 basis 
                        points and an origination fee not to exceed 100 
                        basis points. For each 100 basis points of 
                        discount, there shall be a minimum 
                        corresponding reduction of a 50 basis points in 
                        the maximum note rate, as defined by the 
                        Secretary, charged to the borrower.
                            ``(iv) To allow the borrower to consolidate 
                        the debts of the borrower up to the greater of 
                        $10,000 or 10 percent of the loan amount, 
                        provided that such amounts shall be disbursed 
                        by the settlement agent at the time of the loan 
                        closing.
                            ``(v) For any other purpose, and under such 
                        terms and conditions, as the Secretary shall 
                        prescribe.
                    ``(B) Limitation.--Any loan described under 
                subparagraph (A) may not be refinanced or extended for 
                an additional amount or term which exceeds the 
                limitations under this subsection.''; and
            (5) by adding at the end the following:
            ``(15) Eligibility not dependent on qualifying under other 
        housing programs.--In no event or circumstance shall an 
        otherwise eligible borrower be denied a loan or loan guarantee 
        under this section solely because such borrower is not eligible 
        (or is eligible and has not applied for) assistance under any 
        other loan, housing, housing assistance, or other housing 
        related program administered, in whole or in part, by the 
        Federal Government.''.

SEC. 3. INCOME ADJUSTMENTS FOR MINORS, STUDENTS, AND PERSONS WITH 
              DISABILITIES.

    Section 501(b)(5)(A) of the Housing Act of 1949 (42 U.S.C. 
1472(b)(5)(A)) is amended by inserting before the period the following: 
``, except that for purposes of this title the mandatory exclusion 
amount for minors, students, and persons with disabilities under the 
definition of adjusted income shall be $2,400''.

Summary: Home Ownership Made Easier Act or the HOME Act - Amends the Housing Act of 1949 to revise eligibility, qualifying population limit, guarantee fee, and refinancing requirements of the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program.

Replaces the current 115% of area median income eligibility limit for families with three income tiers, including households of up to four members, of up to eight members, and of over eight members.

Repeals the requirement that the loan applicant qualify for other specified federal housing loans as well. Requires the single-family residence acquired or constructed with such a loan to be located in a rural area (as under current law), but allows the area population to range up to 40,000.

Increases from 1% to 2% of the principal obligation of a guaranteed loan the guarantee fee which the Secretary may collect from the lender.

Permits the refinancing of a guaranteed loan to: (1) pay off any other loan (including a first or second purchase mortgage) not made or guaranteed under such Act; (2) repair mechanical or structural deficiencies to the borrower's residence; (3) pay for authorized closing costs, including a discount of up to 200 basis points and an origination fee of up to 100 basis points; (4) allow the borrower to consolidate debts of up to the greater of $10,000 or 10% percent of the loan amount; and (5) carry out other authorized purposes.

Prohibits denial of a loan or loan guarantee to an eligible borrower solely because the borrower is not eligible (or is eligible and has not applied for) assistance under any other federal loan, housing, housing assistance, or other housing related program.

Makes $2,400 the mandatory exclusion amount in the adjusted income of minors, students, and persons with disabilities under the farm housing financial assistance program.