First-time homebuyers & downpayment assistance

The $15,000 first-time homebuyer tax credit the Biden administration had planned? Well, it has apparently taken a very different form.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!    Senior Mortgage Reporter Georgia Kromrei landed a big scoop last night – that $15,000 first-time homebuyer tax credit the Biden administration had planned? Well, it has apparently taken a very different form.    The newest draft of a down-payment assistance bill would provide up to $25,000 to first-time homebuyers, but only those who are also first-generation homebuyers and economically disadvantaged. Also of note is that the proposal is not actually a homebuyer tax credit, but a grant, which means it is money that would be available at closing.   The program, drafted by Rep. Maxine Waters (D-CA) and currently being discussed in the House of Representatives, would dole out funds to states based on population, median area home prices and racial disparities in homeownership rates. State finance agencies would be responsible for issuing the grants.   Clearly this is an initiative to redress housing inequities that go back hundreds of years, and in line with broader Democratic policies of late.    Having said all that, I've heard from some LOs in the past who have been frustrated with various downpayment assistance programs. I'd like to hear from you all about your experience with borrowers who rely on such programs. What are the issues?    Separately, what do you think about a heavily means-tested homeowner grant program? In favor? Concerned about bureaucracy? We'd love to hear your thoughts. Please reach out to me anonymously at jkleimann@housingwire.com.    Hope you all have a great weekend!

James Kleimann

Managing Editor, HousingWire

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