Homeownership Assistance Act of 1989

[AI summary unavailable — showing source text] Homeownership Assistance Act of 1989 - Amends the National Housing Act to create a special mortgage insurance program for first-time homebuyers. Defines "first-time homebuyer" as an individual who or whose spouse has not owned a principal residence during the 18 months prior to a Federal Housing Administration (FHA) insured home purchase. Authorizes downpayment reductions. Authorizes an FHA demonstration program to insure 100 percent of a home's value for a first-time homebuyer. Authorizes FHA to insure adjustable rate mortgages with annual interest rate increases of up to two percent (currently one percent). Repeals the aggregate annual limit. Amends the Federal National Mortgage Association Charter Act to provide for secondary market purchases of such downpayment mortgage loans. Amends the Deficit Reduction Act of 1984 to exempt such loans from specified offset debt collection provisions. Requires the Secretary of Housing and Urban Development to submit annual program reports to the Congress.…