Senate Bill Proposes $50,000 Down-Payment Match for First-Time Buyers

The Homeownership Promise Act, introduced this week by Senator Jeff Merkley of Oregon and co-sponsored by Senator Ron Wyden, would let any first-time homebuyer open a “Homeownership Promise Account” through the U.S. Department of Housing and Urban Development (HUD). For every dollar saved, the federal government would contribute five dollars, creating a matching grant of up to $50,000. Accounts must be held at Treasury-certified Community Development Financial Institutions (CDFIs). Employers and nonprofits could also make contributions on an individual’s behalf. To qualify, participants must complete HUD-approved housing counseling and purchase a home priced at or below the median in their area.

Newsweek

A recent LendingTree analysis finds that less than 40 % of non-homeowner households can afford a typical starter home. National Association of Realtors data show the share of first-time buyers fell to a record low of 21 % last year, while the median age of first-time purchasers rose to 40 years (up from 33 years in 2019). Mortgage rates, which had slipped to 5.98 % in late February, have risen above 7 % following the start of the war in Iran. Realtor.com analysis estimates that buying a home by age 30 yields a 22.5 % higher net worth—about $119,000 more—by age 50 compared with purchasing at age 40.

Newsweek

He argued that “working families should be able to afford a decent home in a decent community.” Merkley’s office has not yet responded to follow-up inquiries.

Newsweek

After introduction, the bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs. While earlier bipartisan housing reforms suggest some cross-party openness, the measure faces an uphill battle in a Republican-controlled Senate and House. Proponents hope that a Democratic majority after the midterms could revive the proposal, though analysts caution that large cash infusions might further limit the supply of affordable homes.

Newsweek