What is $25,000 First Time Home Buyer Grant 2024?
The Downpayment Toward Equity Act, also known as the $25,000 First-Time Buyer Home Grant, proposes to provide first-time homebuyers with a $25,000 grant to purchase a new home. This initiative, introduced in 2021, aims to assist Americans in entering the housing market and has been included in President Biden’s 2024 fiscal year budget proposal. This cash grant program will help make homeownership more accessible to first-time buyers.
What is the Downpayment Towards Equity Act?
The Downpayment Toward Equity Act is a groundbreaking proposal designed to empower first-time, first-generation homebuyers to realize their goal of owning a home. This legislation offers up to $25,000 in financial support to cover the initial costs associated with purchasing a home, such as down payments, mortgage closing costs, and obtaining a lower interest rate on their mortgage.
Important Note; The $25,000 grant is not yet available as the Downpayment Toward Equity Act has not been passed into law, and applications are not currently being accepted.
The Downpayment Toward Equity Act aims to close the homeownership gap for moderate- and low-income households, particularly socially and economically disadvantaged buyers, including those with disabilities and minority groups. If passed, the $25,000 grant would be distributed by HUD and local agencies, providing cash assistance at closing. While pending, explore other first-time homebuyer grants and down payment assistance programs (DPAs) available now.
Program Details
Here is a summary of the $25,000 First Time Home Buyer Grant 2024:
| Scheme | $25,000 FTHB Grant 2024 |
| Managed By | Federal Government |
| Program Name | Federal Housing Assistance |
| Amount | $25,000 |
| Post Type | Finance |
| Official Link | www.usa.gov |
Did the $25,000 down payment grant get passed?
It introduced in 2021, the Downpayment Toward Equity Act aims to boost homeownership. The latest update: White House allocates $175 billion for affordable housing, including $10 billion for first-time homebuyer grants. Industry experts hopeful for approval by end of 2024.
What is the current status of the Downpayment Toward Equity Act?
Update as of August 2024: The Downpayment Toward Equity Act is still pending and has not been enacted, which means you cannot apply for or receive a $25,000 homebuyer grant at this time. This proposed legislation is part of the current 2023-2024 Congress session and has undergone revisions since its previous version, the Downpayment Toward Equity Act of 2021 (H.R. 4495), which expired in the previous Congress.
While Rep. Maxine Waters has introduced both the previous and current House versions, the updated Senate version, sponsored by Senator Raphael Warnock, is still awaiting reintroduction, with no public timeline announced.
How can I apply for the $25,000 First Time Home Buyer Grant in 2024?
To apply for the $25,000 First Time Home Buyer Grant in 2024, follow these steps:
- Education Register for and complete homebuyer education courses to demonstrate financial accountability.
- Application Form: Access the official FHA website, locate the application form, and fill it out accurately with up-to-date information.
- Documentation: Include all required documents, such as proof of income, driver’s license, bank details, and recent tax returns.
- Submission: Submit the application online or print it and deliver it to the nearest FHA office.
- Social Security Number: Ensure you have your Social Security Number ready before beginning the application process.
What are the eligibility requirements to get 25,000 down payment grant?
First-time homebuyer
Grant funds are for first-time homebuyers buying their primary residence, with no home ownership or co-signing in the past 3 years.
First-generation homebuyer
Parents, legal guardians, spouse, or domestic partner have not owned a home in the past three years (waived for those who have lived in foster care and meet income limits)
Income Limits
| Household Status | Monthly Income Limit ($) |
| Individual | 25000 |
| Married Couple | 3500 |
The Downpayment Toward Equity Act has income limits, capping eligibility at 120% of the area median income for most areas. However, in areas with high real estate costs, the income limit is raised to 180% of the area median income, allowing more buyers to qualify.
Property Types
Single-family homes, condos, manufactured homes, and multi-unit homes (up to four units, with one unit occupied by the buyer)
Mortgage Loans
The $25,000 grant can be used with conventional loans (Freddie Mac/Fannie Mae) and qualified mortgages (FHA/VA/USDA/Section 184), making it a versatile option for first-time home buyers.
Program Requirements
- Five-year residency: Live in the home for 5 years to avoid repayment. Sell sooner and you may repay part or all of the funding, unless your profit is less than the repayment amount.
- Housing counseling course: To qualify, homebuyers must complete a HUD-approved homebuyer education course, which typically takes less than 90 minutes. To find a nearby counseling agency, visit the (link unavailable) website, which offers a searchable database of approved agencies across the country.
Note: Grant funding cannot be used for second homes or rental properties.
Is Biden giving $25,000 to first-time home buyers?
President Biden has proposed a $25,000 grant for first-time homebuyers, but the bill is still pending in Congress. In the meantime, other down payment assistance programs are available.
When will the $25,000 First-Time Home Buyer Grant pass?
The $25,000 grant’s passage depends on the Downpayment Toward Equity Act clearing Congress (House and Senate) and getting the President’s signature, with no set timeline.
Who sponsors the Downpayment Toward Equity Act?
In 2023, Rep. Maxine Waters (CA) and Sen. Raphael Warnock (GA) introduced the Downpayment Toward Equity Act in both the House and Senate. As of 2024, the bill is pending reintroduction in the Senate for the current congressional session.
How much do first-time home buyers get in grants?
First-time home buyers can get grants from $1,000 to 5% of the home’s price, offered by state/local agencies, nonprofits, and approved lenders.
What is the purpose of the $25,000 FTHB Grant?
The $25,000 First-Time Home Buyer (FTHB) Grant aims to assist with down payment and closing costs, making homeownership more accessible and affordable for first-time buyers.
Who manages the $25,000 FTHB Grant?
The $25,000 First-Time Home Buyer (FTHB) Grant is managed by the U.S. Department of Housing and Urban Development (HUD), in partnership with state and local housing agencies, nonprofit organizations, and approved mortgage lenders. However, please note that the grant is still a proposed legislation and not yet available.
