A newly reintroduced bill in the House of Representatives aims to provide $100 billion in direct assistance to first-time, first-generation homebuyers, says Congresswoman Maxine Waters, who helped reintroduce the bill. The Downpayment Toward Equity Act would provide up to $25,000 for socially and economically disadvantaged buyers and $20,000 for other eligible first-time buyers.
The bill targets those with incomes up to 120% of the area median income—or 180% in high-cost areas—including people whose parents have not owned a home recently and individuals formerly in foster care.
“Homeownership is a cornerstone of the American Dream and the most powerful tool for building generational wealth,” said Waters. She pointed to the historic obstacles families of color face due to high costs and predatory lending.
Funds would be distributed through the U.S. Department of Housing and Urban Development and state agencies, with 75% allocated by population, home prices, and racial disparities. The remaining 25% would be awarded competitively to community-based organizations.
Assistance could be used alongside FHA, VA, USDA, Fannie Mae, and Freddie Mac loans. The program also requires homebuyer education and counseling with the goal of ensuring long-term homeowner stability and reducing foreclosure risks.
The legislation aims to expand homeownership access for roughly 5 million potential buyers, many of whom are Black and Latino and face steep upfront costs that often block entry into the housing market.
Rep. Ayanna Pressley called housing “a fundamental human right” and said the bill affirms economic justice by empowering first-generation buyers to build wealth. “Black and brown families have been historically denied the opportunity to own homes,” she said. “This is exactly the type of policy this moment demands.”
Mortgage rates near 7% and home prices rising over 57% since 2019 have contributed to a decline in first-time buyers to just 24% of purchases in recent years, according to the bill’s authors.
If passed, the bill would create one of the largest federal down payment assistance efforts in decades and would allow state housing finance agencies, with experience administering similar assistance, to reach more families.
Groups like the National Fair Housing Alliance and the National Association of Realtors have highlighted how down payment challenges keep many creditworthy buyers from entering the market.
This legislation would not only provide financial support but also deliver education and counseling, aiming to make homeownership more sustainable for new buyers.
Though first introduced by Waters , Pressley, Congressman Al Green (D-TX) and Congresswoman Sylvia Garcia (D-TX).
While the bill’s reintroduction highlights ongoing efforts to make homeownership more accessible, its passage remains uncertain. The evolving legislative landscape and political dynamics will influence the bill’s trajectory in the coming months
