Homeownership has become out of reach for too many Americans. Even workers with good jobs can't afford a home due to down payment and closing costs. Homeownership represents hope for the future. Young adults whose parents bought a starter home now don't see the same future for themselves. We need to revitalize Americans' hope in their own futures. We must bring down the costs of homeownership through down payment assistance.
Congresswoman Leger Fernandez ecured $750,000 in Community Project Funding to help homebuyers in New Mexico buy a home of their own. The New Mexico non-profit Homewise is using the funds to close the affordability gap by providing a $30,000 down payment assistance grant to eligible first-time homebuyers. The Homewise grant project is the pilot program for a national program.
Congresswoman Leger Fernandez's Home of Your Own Act creates a national homeownership assistance grant program to help address this housing crisis.
Specifically, the Home of Your Own Act:
Creates a new national homeownership assistance grant program at the U.S. Department of Housing and Urban Development.
Provides one-time, $30,000 homeownership assistance to eligible first-time homebuyers who earn up to 120 or 150 percent of the area median income.
Provides flexible financial assistance to homebuyers that can be used for down payment costs, closing costs, mortgage interest rate reduction, and/or necessary repairs prior to move-in.
Streamlines assistance to underserved communities by empowering community development financial institutions to partner with states to administer at least 25% of the funds to homebuyers.
Prepares participants for homeownership by requiring participants to complete a homeownership financial counseling program prior to receiving financial assistance.
Dedicates homeownership grant funds to all 50 States, U.S. Territories (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, & United States Virgin Islands), and the District of Columbia.
Sets aside three percent of the authorized funding as homeownership grant funds for Tribal entities.
Authorizes $33.5 billion for the grant program over 5 years with $6.7 billion authorized per year.
The Home of Your Own Act is supported by America's Credit Unions, Credit Union Association of New Mexico, Homewise, Local Initiatives Support Corporation, National American Indian Housing Council, National Association of Realtors, National NeighborWorks Association, and UnidosUS.
