US homebuyers could get $50,000 down-payment aid: Who qualifies
The proposal comes as high mortgage rates and elevated home prices continue to make homeownership difficult for many prospective buyers.
Democratic Senators Jeff Merkley and Ron Wyden may introduce a draft bill that could provide up to $50,000 in federal down-payment assistance for first-time homebuyers in the United States, according to Axios. The Homeownership Promise Act seeks to address the challenges prospective buyers face due to high mortgage rates and elevated home prices.
Under the bill, the federal government would match every dollar saved by an eligible first-time homebuyer, up to a maximum of $50,000. Employers and nonprofit organizations may also contribute toward a buyer's savings, but these contributions would not qualify for the federal match. Eligible buyers would be limited to homes priced at or below the local median home price and must save the down-payment funds in participating financial institutions certified by the US Treasury Department as Community Development Financial Institutions (CDFIs).
The proposed assistance aims to make homeownership more attainable for working families, similar to the $8,000 first-time homebuyer tax credit offered after the 2008 financial crisis.
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