Representative Maxine Waters (CA), along with representatives Al Green (TX), Ayanna Pressley (MA), and Sylvia Garcia (TX), reintroduced the Downpayment Toward Equity Act (H.R. 4069) this week, legislation that would provide $100 billion in direct assistance to help first-time, first-generation homebuyers purchase their home.
The bill provides up to $20,000 for first-generation homebuyers and up to $25,000 for socially and economically disadvantaged homebuyers. The assistance can be used for down payments, closing costs, and mortgage interest rate buydowns. Eligibility extends to those with incomes up to 120% of area median income (or 180% in high-cost areas) and includes homebuyer education and counseling.
H.R. 4069 seeks to address persistent barriers facing communities that have been historically excluded from homeownership. Historically, housing discrimination has prevented millions of Americans from building intergenerational wealth, creating lasting obstacles to homeownership. Without family wealth to draw upon, these communities are particularly impacted by rising housing costs and face greater challenges saving for a down payment, even if a family can afford a monthly mortgage payment. NAR's 2024 Profile of Home Buyers and Sellers demonstrates these disparities, showing that 83% of recent home buyers identified as White or Caucasian, while only 7% identified as Black/African American, 6% as Hispanic/Latino, and 4% as Asian/Pacific Islander. Homeownership remains a critical pathway to building generational wealth.
NAR supports this legislation. Shannon McGahn, NAR's senior vice president of government affairs, stated: "We applaud Ranking Member Waters' reintroduction of the Downpayment Toward Equity Act. This bill has the potential to be a meaningful step toward addressing long-standing disparities in wealth and homeownership, while expanding access for first-generation buyers. By directing assistance to those who need it most, the bill acknowledges that the greatest barrier to homeownership today isn't credit—it's cash. REALTORS® see firsthand how a lack of upfront funds keeps creditworthy Americans out of the market. We commend the leadership behind this legislation and look forward to supporting it as it moves through Congress."