Housing Affordability Crisis
Making Homeownership Achievable for Working Americans
Homeownership should not be out of reach for working Americans. That’s why I wrote the First-Time Homebuyers’ Assistance Act, which provides up to a $40,000 federal down payment loan for individuals or couples who haven’t purchased a home by age 35. Eligibility includes an income cap of up to $120,000 (single) or $240,000 (married), a home price cap of $700,000, and a 0% interest loan that begins repayment in year six over 15 years. It can’t be discharged in bankruptcy and must be repaid upon sale or equity realization. This program opens the door to ownership for millions and strengthens the American middle class. Please read my draft bill below.
Key Points
Up to $40,000 federal down payment assistance
Zero percent interest loan with flexible repayment
Income caps: $120,000 for singles, $240,000 for couples
Home price cap: $700,000
Loan repayment begins in year six, paid over 15 years
Cannot be discharged in bankruptcy; must be repaid upon sale or equity realization
Designed to make homeownership possible for working families and to strengthen the middle class
Up to $40,000 federal down payment assistance
Zero percent interest loan with flexible repayment
Income caps: $120,000 for singles, $240,000 for couples
Home price cap: $700,000
Loan repayment begins in year six, paid over 15 years
Cannot be discharged in bankruptcy; must be repaid upon sale or equity realization
Designed to make homeownership possible for working families and to strengthen the middle class
First-Time Homebuyers’ Assistance Act
By Sean Hutchinson NV D3
Purpose: To provide financial assistance and support for first-time homebuyers in order
to make homeownership more accessible, especially for lower- and middle-income families.
Key Provisions:
1. Down Payment Assistance: Eligible first-time buyers may receive a grant of up to $40,000 (or a certain percentage of the home price) to be used toward their down payment.
2. Interest Rate Reductions: The bill would offer subsidized interest rates on mortgages for qualifying first-time buyers, making monthly payments more affordable.
3. Financial Education Requirement: Recipients would need to complete a homebuyer education course to ensure they understand the responsibilities of homeownership.
4. Income Eligibility Limits: The program would be available to individuals earning $120,000 a year or less, and married couples earning $240,000 a year or less.
5. Property Price Cap: Only homes, townhouses, and condominiums priced at $700,000 or below will be eligible for this program.
6. Age Requirement: All eligible individuals or married couples must be 35 years old or younger to take advantage of these benefits.
7. U.S. Citizenship Requirement: Only U.S. citizens are eligible to participate in this first-time homebuyers’ program.
8. No Credit Checks But Financial Parameters: There are no credit checks required for approval. However, applicants must pass debt-to-income ratio tests, meet minimum length-of-employment requirements, and have a stable income.
9. Five-Year Ownership Clause: After five years of homeownership, the down payment provided by the federal government will convert into a zero percent interest loan with a 15-year repayment term. Starting in the sixth year of ownership, buyers must begin repaying the loan. Alternatively, the amount can be taken out of the home’s equity if the owner chooses. If individuals default or abandon the home, they are personally responsible for paying the federal government back, and the debt cannot be discharged in bankruptcy.
10. Multiple Borrowers: Up to four people can be on the loan and jointly responsible for repaying the down payment, provided they all meet the income requirements and other terms stated in this draft.
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