Matching Savings Program for First-Time Home Buyers (Up to $5,000)
This bill establishes a 5-year pilot program offering up to $5,000 annually in matching funds for 20,000 eligible first-time homebuyers with moderate incomes. The goal is to help cover down payments, closing costs, and essential repairs. Crucially, the matching funds are structured as a second mortgage that must be repaid if the homeowner sells or vacates the property within the first three years.
Key points
The government will match 50% of savings, up to $5,000 per year, for individuals earning up to 120% of the area median income.
Eligibility requires mandatory completion of homeownership counseling provided by a HUD-certified agency.
The matching funds are treated as a second mortgage that is forgiven over 36 months; selling the home early requires repayment of the remaining balance.
Funds can be used for down payments, closing costs, agent commissions, appraisal fees, or qualified home repairs.
Status:
Introduced
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