Biden announces down payment assistance program for first-generation homeowners

As a part of a the State of the Union Address, President Biden is announcing a series of initiatives to help Americans buy homes. With inflation and interest rates rising, the Biden administration is working to create opportunities to help home buyers overcome the economic barriers to home ownership.

These are just proposals for now, but below we have broken down all of the opportunites for home buyers. If you’re looking to buy sooner, we can help find existing down payment assistance programs and first time home buyer programs you can use today.

Down Payment Assistance for First-Generation Homeowners

Under Biden’s proposal, first generation homeowners could use up to $25,000 in down payment assistance. The White House estimates that up to 400,000 families could leverage this benefit to buy their first home.

Lower Closing Costs

In addition to addressing affordability with down payment assistance, the proposal would implement several measures that would lower closing costs for new home owners.

Closing costs are an important piece of the cash you need to close on your new home, so these initiatives should help more first time home buyers get into new homes.

Credit for selling starter homes

A big hurdle for first time home buyers is starter home inventory. The Biden administration has included a credit to incentivize more Americans to sell the starter homes they have. This way, there are more starter homes for potential first time hoem buyers to buy.

This one year, $10,000 tax credit will help more first time home buyers find homes to buy, and more homeowners scale up their current homes.