First-Time Homebuyers Could Get $50,000 Under New Bill
Summary
A new bill called the Homeownership Promise Act was introduced in the Senate to help first-time homebuyers save for a house down payment. It would give buyers up to $50,000 in federal funds, matching five dollars for every dollar saved in special accounts managed by certified financial institutions.Key Facts
- The bill was introduced by Senators Jeff Merkley and Ron Wyden from Oregon.
- It allows first-time buyers of any income level to receive a five-to-one matching grant to save for a home down payment.
- Buyers can get up to $50,000 from the federal government for their savings.
- Special savings accounts called "Homeownership Promise Accounts" would be set up with certified Community Development Financial Institutions (CDFIs).
- Employers and nonprofits can also contribute to these accounts to help buyers save faster.
- Homebuyers must complete a housing counseling program approved by the U.S. Department of Housing and Urban Development (HUD).
- The home bought must be priced at or below the median home price in the buyer’s area.
- The bill aims to address the decline in first-time homebuyers, whose share dropped to 21% last year, and the rising average age of first-time buyers now at 40 years old.
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