A bill to amend the National Housing Act to increase maximum mortgage amounts and reduce downpayment requirements under certain FHA single-family mortgage insurance programs, to permit full implementation of the graduated payment mortgage program.

Amends the National Housing Act to extend the eligibility of mortgages for insurance and to increase the maximum allowable mortgage amounts.

Permits the Secretary of Housing and Urban Development to insure, on a permanent basis, mortgages and loans with provisions of varying rates of amortization. States that the principal obligation of such mortgages insured may not exceed 97 percent of the appraised value of the property covered by the mortgage. Exempts such insured mortgages from State laws limiting the amount of interest which may be charged.