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119-hr-7244119th CongressWALLET

First-Time Home Buyers Match Act

Sponsored By: Representative Bynum, Janelle S. [D-OR-5]

Introduced

Summary

Matching savings for first-time homebuyers. This bill would create a HUD pilot that matches deposits in special savings accounts to help first-time buyers build down payments and cover closing costs. The pilot would start within a year, run five years, and target 20,000 eligible prospective borrowers each year.

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  • Families and first-time buyers: Would provide a federal match equal to the lesser of 50 percent of a participant's annual deposit or $5,000. Eligible participants must be U.S. citizens 18 or older, meet the bill's first-time buyer definition, have no more than $75,000 in liquid assets, and earn at most 120 percent of area median income.
  • Home purchase terms: Matched funds could only be used for a down payment, title and closing costs, agent commissions, appraisal and inspection fees, loan origination fees, or qualified home repairs. The match is treated as a 36-month second mortgage that amortizes by 1/36 each month and must be repaid if the owner sells or stops living in the home.
  • Program rules and evaluation: HUD would establish qualifying savings accounts at insured banks or credit unions, limit matches if an account balance is at least 10 percent of the area's median single-family home value, and must report to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs within 180 days after the recapture date on participation, demographics, closings, defaults, repair costs, and overall effectiveness.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Matched savings for first-time buyers

If enacted, HUD would create a five-year pilot starting within one year. Each year the pilot would serve up to 20,000 first-time buyers. HUD would match the lesser of 50% of your yearly deposits or $5,000 into a qualifying savings account. HUD would not deposit if your account balance is at least 10% of the area median single-family home value. Matched money would only pay for a down payment, closing costs, agent fees, appraisal and inspection fees, loan origination fees, or certain home repairs that must be reported. The match would be a 36-month second mortgage that falls by 1/36 each month you live in the home and the remaining balance would be due if you sell or stop living there. To qualify you would need to be a U.S. citizen age 18 or older, a first-time homebuyer, have no more than $75,000 in liquid assets, earn at or below 120% of area median income, and complete HUD-certified homeownership counseling. HUD would report program metrics and evaluations to congressional committees within the bill's deadlines.

Sponsors & CoSponsors

Sponsor

Bynum, Janelle S. [D-OR-5]

OR • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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