WASHINGTON, D.C. – Federal Housing Administration loans must be more readily available to first time homebuyers during a time when interest rates are on the rise and home prices have seen significant increases.

This was the testimony of A.W. Pickel III, the past president of the National Association of Mortgage Brokers (NAMB) and the owner of LeaderOne Financial Corporation in Lenexa, Missouri. Pickel testified earlier this week before a subcommittee of the U.S. House Committee on Financial Services.

Affordable housing continues to be a serious issue throughout the country and in Kansas City, where the City Council recently declared April as “Fair Housing Month.”

“Congress and this administration have made homeownership a priority in our country,” said Pickel. “Unfortunately, today the demand for homes continues to outpace new housing development and sales of existing homes, causing escalation of home prices.”

Pickel said increasing access to loans insured by the Federal Housing Administration (FHA) will help low-to-moderate income homebuyers take advantage of the safer and less expensive financing options provided through the program.

Created in the early 1930s to help foster a more stable mortgage market, FHA acts as an insurer of loans that typically only require 3 percent down compared to requirements of 10 or 20 percent down for traditional mortgage loans. This lower down payment is a major factor in eliminating barriers to home ownership.