Bill > HR4023

This bill establishes a pilot program through the Department of Housing and Urban Development (HUD) to provide down payment assistance loans to first-time and first-generation homebuyers. The program will award grants to states, territories, and Indian tribes to create revolving loan funds that offer down payment assistance between 3-20% of a home's purchase price, with maximum loan amounts ranging from $50,000 to $150,000 depending on the area's housing costs. Eligible borrowers must be U.S. citizens or permanent residents, have completed a homebuyer education course, have an income not exceeding 150% of the area median income, and self-attest that they cannot afford more than 5% of the home's total value as a down payment. When the home is sold, borrowers will repay the loan, including a percentage of the home's appreciation if its value increases. The program includes provisions for distributing loans via first-come, first-served basis or lottery, limits administrative costs to 15%, and requires annual reporting to HUD. The pilot program is authorized for fiscal years 2026-2030, with the goal of helping individuals, particularly those from historically marginalized communities, become homeowners by reducing initial financial barriers to home purchase.

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https://www.congress.gov/bill/119th-congress/house-bill/4023/all-info