The $25,000 Down Payment Toward Equity Act is a proposed federal initiative aimed at assisting first-time homebuyers, particularly those from first-generation and economically disadvantaged backgrounds.
Introduced in 2024, the act seeks to provide substantial financial support to help individuals overcome the significant hurdle of saving for a down payment on a home.
Key Details:
- Grant Amount: Eligible first-time homebuyers could receive up to $25,000 to cover down payment and closing costs.
- Eligibility Criteria:
- Applicants must be first-time homebuyers.
- Preference is given to first-generation homebuyers, meaning individuals whose parents or legal guardians have not owned a home in the past three years.
- Applicants should meet specific income limits, typically up to 120% of the area median income, with higher thresholds in high-cost areas.
- Usage of Funds: The grant can be applied toward various homebuying expenses, including down payments, closing costs, and mortgage interest rate reductions.
- Current Status: As of now, the Down Payment Toward Equity Act has not been enacted into law. It remains a proposal and is awaiting legislative approval.
For Trealtorr Clients:
While this program is not yet available, it’s essential to stay informed about its progress.
If enacted, this credit could significantly reduce the upfront costs of purchasing a home.
Our team at Trealtorr is committed to keeping you updated on this and other potential assistance programs to make your homebuying journey as smooth as possible.
Questions? Check out our Frequently Asked Questions
or give us a call at +1 (347) 831-6085