Overview: Home of Your Own Act of 2025
| Bill Number | Chamber | Sponsor | Date Introduced |
|---|---|---|---|
| H.R.2064 | House | Rep. Teresa Leger Fernandez (D-NM) | March 11, 2025 |
The Home of Your Own Act of 2025 creates a fund for giving non-taxed cash grants up to $30,000 to first-time home buyer. Grants can be used for down payments, closing costs, and home repairs.
The bill was first introduced in the 119th Congress on March 11, 2025 in the House of Representatives. Its main sponsor is Rep. Teresa Leger Fernandez (NM-3).
The program works alongside existing mortgage programs and can be layered with other assistance such as the $15,000 First-Time Home Buyer Tax Credit and the HELPER Act.
Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates about this and other first-time home buyer programs, subscribe to our newsletter.
Bill Overview
Home of Your Own Act of 2025
A bill to create federally funded $30,000 grants for first-time home buyers to assist with down payments, closing costs, and home repairs.
Bill Overview
Home of Your Own Act of 2025
A bill to create federally funded $30,000 grants for first-time home buyers to assist with down payments, closing costs, and home repairs.
Official Title as Introduced
A bill to require the Secretary of Housing and Urban Development to establish a program to provide homeownership assistance grants, and for other purposes.
House of Representatives
What is the Home of Your Own Act of 2025?
The Home of Your Own Act of 2025 is a housing bill that creates a federal grant program for first-time buyers. The fund gives 10% of a home's purchase price, up to $30,000 per home, to eligible home buyers for down payments, closing costs, and repairs and modifications required to move-in. Grants are non-taxed.
Here are the program's key eligibility requirements:
1. Must be a first-time home buyer
Home buyers must meet the federal definition of a first-time home buyer, which means they have not owned a home in the past three years or have never owned a home.
For households with more than one borrower, all co-borrowers must meet the first-time home buyer definition. If one borrower has owned a home in the past three years, the household does not qualify unless an exception applies.
The grant's first-time home buyer definition follows the same standards used in other federal housing programs, including exceptions for displaced homemakers and those who owned homes more than three years ago.
Reference: Who qualifies as a first-time home buyer
| Scenario | First-Time Home Buyer? |
|---|---|
| Has never owned a home | Yes |
| Owned a home within the last 36 months | No |
| Displaced homemaker (recently divorced, no ownership since) | Yes |
| Inherited a home but never lived in it | Yes |
| Lost a home to foreclosure 2 years ago | No |
| Owned a primary residence more than 3 years ago, now rents | Yes |
| Spouse owned a home in the last 36 months, applicant did not | No |
2. Must meet income requirements
The Home of Your Own Act is limited to low-to-moderate income households. The program uses HUD's measure of area median income (AMI), which varies by location and household size.
- In standard cost of living areas, total household income must be at or below 120% of AMI
- In high-cost areas, total household income must be at or below 150% of AMI
- For homes on Indian tribe land, income can be up to 120% of either local AMI or national AMI, whichever is greater
Eligibility is based on combined household income, not just the borrower listed on the mortgage application.
Use our Income Limits calculator to see if you earn too much to qualify based on where you live.
Home of Your Own: Eligibility Based on Income
| Area Type | Maximum Income Limit | Example if AMI = $80,000 |
|---|---|---|
| Standard Area | 120% of AMI | $96,000 or less |
| High-Cost Area | 150% of AMI | $120,000 or less |
| Indian Land | 120% of AMI or National AMI | Greater of $96,000 or national AMI |
3. Must purchase an eligible home
The Home of Your Own Act covers a wide range of home types, including:
- Single-family homes
- Townhomes
- Condominiums
- Co-ops
- Manufactured housing units
The home must have 1-4 dwelling units and meet the underwriting requirements for conventional, FHA, VA, or USDA loans.
4. Must occupy the home as a primary residence
The Home of Your Own Act requires home buyers to occupy the home they're buying as their primany residence. According to the bill's language:
- Buyers must move into the home within 60 days of closing
- The home cannot be used as a vacation property, rental property, or second home
- The home must be the buyer's main dwelling where they live most of the year
5. Must complete financial counseling
Before receiving assistance, eligible buyers must complete a financial counseling program approved by HUD or the administering state or Indian tribe. The program must be provided by a HUD-approved housing counseling agency, either in person, online, by phone, or another format approved by HUD.
Fannie Mae offers a free course called HomeView, and Freddie Mac offers a free course called CreditSmart Homebuyer U. Both classes meet the Home of Your Own Act requirement.
An approved homeownership education course will cover the financial responsibilities of homeownership, fair housing rights, and the availability of post-purchase counseling.
6. One-time use only
The Home of Your Own Act provides a one-time benefit. Eligible buyers may only receive the grant once in their lifetime.
If a household member has previously received a grant, no member of the household will qualify regardless of who is on the mortgage application. For example, if a spouse used the $30,000 grant at a previous residence, neither member of the couple can receive the grant again for a new home they purchase together.
7. Must occupy the home for 5 years
To avoid repayment requirements, buyers must occupy the home as their primary residence for 60 months after they can lawfully occupy it. The home must be the buyer's main dwelling where they live most of the year.
Buyers who move before completing the 5-year occupancy requirement may need to repay a proportional amount of the grant. However, exceptions apply for hardships or financial losses on sale.
How Does the Home of Your Own Act Work?
The Home of Your Own Act creates a federal grant program administered through states and Indian tribes. HUD provides oversight and funding. The program distributes $6.7 billion annually to help first-time buyers overcome upfront homeownership costs.
The fund can help at least 223,000 home buyers each year.
Money is distributed to states and Indian tribes through HUD
The program operates through a federal-state partnership:
- Congress appropriates $6.7 billion annually
- HUD allocates 3% of funding to Indian tribes
- HUD distributes remaining funds to states using an equitable formula
- States and tribes administer grants to eligible buyers
To make sure that grants reach underserved communities, states are required to distribute at least one-quarter of their grant money through community development financial institutions (CDFIs) and other organizations with local homeownership assistance expertise.
Indian tribes may also use CDFIs, tribal housing entities, or intertribal consortia.
How home buyers can use their grant
The Home of Your Own Act gives 10% of a home's purchase price, up to $30,000, to eligible buyers. Funds can be used for any cost that's a part of the purchase.
Down payment and closing costs
The most common use the $30,000 Home of Your Own grant is to use it for your down payment, which is often the largest obstacle to homeownership for first-time buyers. For example, if buy a $300,000 home and use a conventional HomeReady or Home Possible mortgage, your down payment requirement is just 3 percent, or $9,000. The grant's remaining $21,000 can be used to pay for closing costs and expenses, and to increase the size your down payment.
Interest rate reductions
Buyers can also use their cash grant to pay for discount points, which is also known as a rate buydown. Discount points lower your monthly payment and save you money over the life of the loan.
Pre-occupancy repairs and modifications
The Home of Your Own grant can also be used for home repairs and modifications that need to be finished before you move in to a home. For example, if the home needs a new water heater to pass inspection, or if a doorway must be widened to accommodate a household member with a disability, the grant can be used to pay for it. This kind of flexibility helps buyers purchase homes that may be older or in need of a little work to make it habitable or to pass inspection.
Layering with other assistance
The Home of Your Own Act allows buyers to combine their $30,000 grant with other assistance programs, including:
- State and local down payment assistance
- Employer assistance programs
- Nonprofit organization grants
- Other federal housing programs
This layering provision maximizes the impact of available assistance and helps buyers who need multiple sources of funding.
Comparison with other first-time buyer programs
The Home of Your Own Act is one of several proposed programs to help first-time buyers. Here's how it compares to other major programs:
| Program | Type | Key Benefit | Income Limit (AMI) | Grant Forgiveness |
|---|---|---|---|---|
| Home of Your Own Act | Grant | Up to $30,000 | 120% / 150% | After 5 years |
| $15,000 Tax Credit | Tax Credit | Up to $15,000 | 170% | After 4 years |
| Equity Act | Grant | $20,000 or more | 120% / 140% | After 5 years |
| LIFT Act | Mortgage | 20-year loan | 120% / 140% | Not applicable |
If You Move Within 5 Years, You'll Pay Some Money Back
The Home of Your Own Act sets aside $6.7 billion each year to give to low- to moderate-income households. The program help first-time buyers buy homes and build wealth through real estate.
To prevent house flippers and real estate investors, the program requires buyers who change their primary residence or sell their home within five years of purchase to repay a portion of the grant they received.
Assuming a $30,000 grant:
- Sell or move within Year 1: Repay 100% of the grant / $30,000
- Sell or move within Year 2: Repay 80% of the grant / $24,000
- Sell or move within Year 3: Repay 60% of the grant / $18,000
- Sell or move within Year 4: Repay 40% of the grant / $12,000
- Sell or move within Year 5: Repay 20% of the grant / $6,000
- Stay 5 years or longer: Repay 0%
The repayment rule has exceptions.
One exception states that buyers who sell their home within five years may have their repayment amount reduced or waived if their home sells at a loss compared to its purchase price.
Other exceptions include hardships that prevent continued occupancy, such as job relocation, divorce, military deployment, or other circumstances determined by HUD.
Compare: Upfront costs with and without Home of Your Own Act assistance
| Cost Category | Without Assistance | With $30,000 Grant |
|---|---|---|
| Down Payment (5%) | $15,000 | $0 |
| Closing Costs | $8,000 | $0 |
| Pre-occupancy Repairs | $5,000 | $0 |
| Interest Rate Buydown | $2,000 | $0 |
| Total Upfront | $30,000 | $0 |
Who Sponsors the Home of Your Own Act in Congress?
The Home of Your Own Act of 2025 was introduced in the House of Representatives on March 11, 2025, by Rep. Teresa Leger Fernandez (D-NM).
For the latest legislative updates and a full list of cosponsors, see the Bill Tracker above.
Frequently Asked Questions About the Home of Your Own Act
Get answers to common questions about the proposed Home of Your Own Act, including eligibility requirements and how the $30,000 grant program works.
What is the Home of Your Own Act of 2025?
The Home of Your Own Act creates a federal program providing cash grants to first-time home buyers worth 10% of the home’s purchase price, up to $30,000.
Who qualifies for the Home of Your Own Act grants?
First-time home buyers with combined household income at or below 120% of area median income (150% in high-cost areas).
How much assistance does the Home of Your Own Act provide?
The program provides 10% of the purchase price, up to $30,000 per eligible buyer, for down payments, closing costs, interest rate reductions, or pre-occupancy repairs.
Is the grant taxable?
No. The law specifies that the Home of Your Own Act grant is excluded from federal income taxes.
Do I have to repay the Home of Your Own Act grant?
No repayment required if buyers occupy the home as a primary residence for 5 years. Early moves may require proportional repayment with hardship exceptions.
How do I apply for the Home of Your Own Act grant?
If the bill becomes law, eligible buyers will apply through their mortgage lender at closing. States and tribes will administer the program under HUD oversight.
What types of homes are eligible under the Home of Your Own Act?
Single-family homes, condominiums, cooperatives, and manufactured housing units with 1-4 units that meet conventional, FHA, VA, or USDA loan requirements.
When will the Home of Your Own Act take effect?
The Act must pass Congress before becoming law. If enacted, HUD will establish the program within 1 year.
How is the Home of Your Own Act different from other down payment assistance programs?
The Home of Your Own Act is a national program with consistent $30,000 grants that allows layering with other assistance programs.
Can I use the Home of Your Own Act grant with other programs?
Yes. The Home of Your Own Act allows combining the $30,000 grant with state, local, employer, nonprofit, and other federal housing programs.
What happens if I need to move for work during the first five years?
Buyers may need to repay a portion of the grant on a sliding scale (100% in year one to 20% in year five) with hardship exceptions for job relocation, divorce, or military deployment.
Do I have to pay for the required financial counseling?
No. HUD-approved housing counseling agencies provide free options through Fannie Mae (HomeView) and Freddie Mac (CreditSmart Homebuyer U).
Can I use the grant for a manufactured home?
Yes. The Home of Your Own Act covers manufactured housing units that meet conventional, FHA, VA, or USDA loan requirements.
What if my income changes after I receive the grant?
Income is evaluated at application and closing. Changes after receiving the grant do not affect eligibility or require repayment.
