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Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. Read more about Dan Green.
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Note: This page is updated regularly. It provides timely, reliable information about first-time home buyer and down payment assistance programs.
Are you buying your first home? The government wants to help.
For the first quarter of 2024, at minimum, many first-time buyers are eligible for an automatic mortgage rate discount that lowers mortgage rates by 1.75 percentage points.
Plus, there are now nine affordable housing programs in discussion within the chambers of Congress. The nine bills tackle home affordability and inclusion and make it easier for renters to buy their first home.:
Bills follow a path before becoming law.
First, first-time home buyer legislation is introduced as a bill. The bill is debated and brought to a vote if there’s excitement for it.
Suppose the vote passes both the House of Representatives and the Senate. In that case, the bill is handed to the President, whose signature ratifies and passes the bill into law.
This article tracks the nine first-time home buyer programs and their progress into law and other first-time buyer programs meant to make homes affordable.
The FHFA First-Time Home Buyer Mortgage Rate Discount is an automatic interest rate reduction for eligible first-time buyers. The rule is sponsored by Fannie Mae and Freddie Mac and lowers conventional mortgage rates up to 1.75 percentage points.
Program eligibility standards include:
Eligible first-time home buyers receive the FHFA mortgage rate discount automatically. Share your income and credit information as part of your mortgage pre-approval to get your total discount size.
Check your mortgage eligibility.
The First-Time Homebuyer Act, also known as the $15,000 First-Time Home Buyer Tax Credit, grants first-time home buyers a refundable federal tax credit of up to $15,000.
The program’s minimum eligibility standards include the following:
The $15,000 First-Time Home Buyer Tax Credit has been introduced and still needs to receive a vote. The first-time home buyer tax credit is unavailable to buyers as of today.
Check your mortgage eligibility.
The Downpayment Toward Equity Act, also known as the $25,000 First-Time Home Buyer Downpayment Grant, gives first-time buyers a cash grant of up to $25,000 toward purchasing a home. Grant cash can pay for any purchase-related line item, including down payment, interest rate reduction, mortgage, real estate closing costs, and other general expenses.
The program’s minimum eligibility standards include the following:
The $25,000 Downpayment Toward Equity Act is introduced and still needs to receive a vote. Cash grants are unavailable to buyers as of today.
Check your mortgage eligibility.
The Uplifting First-Time Homebuyers Act is a tax-incentive bill that lets home buyers use more of their 401(k) toward purchasing a home.
Under current law, first-time home buyers can early-withdraw up to $10,000 from their 401(k) retirement fund penalty-free if that money is used to purchase a home. Under The Uplifting First-Time Homebuyers Act, Congress doubles the limit to $20,000.
The program’s minimum eligibility standards include the following:
The Uplifting First-Time Homebuyer Act has been introduced and still needs to receive a vote. Its additional tax incentives are unavailable to first-time home buyers as of today.
Check your mortgage eligibility.
The Decent, Affordable, Safe Housing for All Act (DASH Act) resembles the First Time Homebuyer Act but with more straightforward qualification standards.
The DASH Act provides up to $15,000 in refundable tax credits to first-time home buyers who meet minimum eligibility standards:
The DASH Act is introduced and still needs to receive a vote. The $15,000 tax credit is not yet available to first-time home buyers.
Check your mortgage eligibility.
The First Generation Down Payment Assistance program is embedded within the Housing is Infrastructure Act of 2021. It awards $25,000 cash grants to first-time buyers toward their home purchases.
The First Generation Down Payment Assistance program is similar to the Downpayment Toward Equity Act but with more specific qualification standards. The program changes the “first-generation home buyer” definition to include all first-time buyers whose parents or legal guardians currently don’t own a home.
The program’s minimum eligibility standards include the following:
The First Generation Down Payment Assistance program is introduced and still needs to receive a vote. The $25,000 cash grant is not yet available to first-time home buyers.
Check your mortgage eligibility.
The Build Back Better Act is a wide-reaching stimulus program that touches housing, education, climate change, and more.
The Build Better Back Act gives first-time, first-generation home buyers cash grants of up to $25,000 for any purchase line-item cost, including down payment, closing costs, and mortgage rate reductions. The bill defines “first-generation home buyer” as all first-time buyers whose parents or legal guardians currently don’t own a home.
The Build Back Better Act’s minimum eligibility standards include the following:
The Build Back Better Act passed a House vote and did not pass a Senate vote.
Check your mortgage eligibility.
The LIFT Act, also known as the LIFT Homebuyers Act, provides below-market mortgage rates to first-generation renters of modest means. The program reduces mortgage interest paid, so homes pay off in 20 years instead of thirty with the same monthly payment, which builds wealth faster.
Home buyers can combine the LIFT Act with other first-time buyer programs, including the $15,000 First-Time Home Buyer Tax Credit and the $25,000 Downpayment Toward Equity Act.
The program’s minimum eligibility standards include the following:
The LIFT Act is introduced and still needs to receive a vote. Its reduced mortgage rates are unavailable to first-time home buyers as of today.
Check your mortgage eligibility.
The Transforming Student Debt To Home Equity Act helps first-time buyers with monthly student loan payments. The bill lowers mortgage rates for buyers, provides discounts on government-owned homes and makes down payment assistance available.
The program’s minimum eligibility standards are
The Transforming Student Debt to Home Equity Act is introduced and still needs to receive a vote. Its reduced mortgage rates and discounted homes are currently unavailable to first-time buyers.
Check your mortgage eligibility.
The American Dream Downpayment Act authorizes a tax-advantaged downpayment savings account. The bill is based on Internal Revenue Code Section 529, which permits tax-advantaged tuition savings accounts. The American Dream Downpayment Act would occupy section 529(b) of the tax code and create savings accounts for buying your first home.
Cash added to a 529(b) down payment savings account can be withdrawn with no taxes due on gains.
Withdrawals from a 529(b) are allowed anytime if buyers use the proceeds to help purchase a home. Buyers can use withdrawals to make a down payment, pay for mortgage and real estate closing costs, pay state and local taxes, and pay other home-buying expenses due at closing.
The American Dream Downpayment Act still needs to receive a vote. 529(b) savings accounts are yet to be available.
Check your mortgage eligibility.
Don’t let Congress make you wait. The FHFA First-Time Home Buyer Mortgage Rate Discount is available and will save you money.
Plus, buyers can use low- and no-money-down mortgages to purchase homes and combine them with local first-time home buyer programs and grants.
Be a better buyer. Subscribe now and never miss out on exclusive insights, new market trends, and first-time buyer programs.
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Mortgage Rate Assumptions
The Homebuyer.com mortgage rates shown on this page are based on assumptions about you, your home, and the state where you plan to purchase. The rate shown is accurate as of , but please remember that mortgage rates change without notice based on mortgage bond market activity.
The Homebuyer.com mortgage rates shown on this page are based on assumptions about you, your home, and the state where you plan to purchase. The rate shown is accurate as of {{ formatDate(rates[0].createdAt) }}, but please remember that mortgage rates change without notice based on mortgage bond market activity.
Our mortgage rate assumptions may differ from those made by the other mortgage lenders in the comparison table. Your actual mortgage rate, APR, points, and monthly payment are unlikely to match the table above unless you match the description below:
You are a first-time buyer purchasing a single-family home to be your primary residence in any state other than New York, Hawaii, and Alaska. You have a credit score of 660 or higher. You are making a down payment of twenty percent and using a 30-year conventional fixed-rate mortgage. You earn a low-to-moderate household income relative to your area.
The information provided is for informational purposes only and should not be confused for a mortgage rate commitment or a mortgage loan approval.
Legal Disclosures
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