Bill Summary
The **First-Time Home Buyers Match Act** aims to assist first-time home buyers by establishing a pilot program managed by the Secretary of Housing and Urban Development (HUD). Under this program, the Secretary will match contributions made by eligible first-time home buyers into their qualifying savings accounts, providing up to $5,000 or 50% of the amount they deposit each year.
Key details include:
- **Eligibility**: Participants must complete homeownership counseling, have a maximum of $75,000 in liquid assets, and earn no more than 120% of the area median income.
- **Account Restrictions**: The matched funds can only be deposited into accounts that do not exceed 10% of the area median home value.
- **Usage of Funds**: The funds must be used for specific purposes related to home purchasing, including down payments, closing costs, and certain home repairs.
- **Recapture Provisions**: The matching funds will act as a second mortgage, reducing over 36 months, and must be repaid if the participant sells or vacates the home.
- **Duration and Reporting**: The program will last for five years, and HUD must report on its effectiveness, including participant demographics and success in home purchases.
This legislation is designed to make homeownership more accessible for eligible individuals by providing financial assistance and promoting responsible financial education.
Possible Impacts
The **First-Time Home Buyers Match Act** could affect people in various ways, including:
1. **Increased Accessibility to Homeownership**: The program allows first-time homebuyers to receive matching funds (up to $5,000) for their savings, making it easier for eligible individuals to accumulate the necessary down payment and closing costs. This financial assistance can significantly lower the barrier to entry for many individuals and families who might otherwise struggle to afford a home in their area.
2. **Incentive for Financial Literacy and Counseling**: The requirement for prospective borrowers to complete homeownership counseling through a HUD-certified agency encourages individuals to become better informed about the home buying process. This education could empower them to make more informed financial decisions, ultimately leading to higher rates of successful home purchases and responsible homeownership.
3. **Targeted Support for Low-Income Individuals**: The eligibility criteria, which limit liquid assets to no more than $75,000 and household income to 120% of the area median income, specifically target lower-income individuals and families. This focus can help reduce economic disparities in homeownership rates among different income brackets and potentially foster more diverse communities.
These examples illustrate the potential benefits of the legislation in promoting homeownership among first-time buyers, particularly those from lower-income backgrounds.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7244 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7244
To require the Secretary of Housing and Urban Development to establish
a first-time home buyers match program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 27, 2026
Ms. Bynum introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Secretary of Housing and Urban Development to establish
a first-time home buyers match program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``First-Time Home Buyers Match Act''.
SEC. 2. FIRST-TIME HOME BUYERS MATCH PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
shall, not later than 1 year after the date of the enactment of this
section, establish a pilot program through which the Secretary shall
each year during the duration of the pilot program, deposit into a
qualifying savings account of each of 20,000 eligible prospective
borrowers an amount equal to the lesser of--
(1) 50 percent of the amount an eligible person deposited
into such account during such year; or
(2) $5,000.
(b) Restriction.--The Secretary may not deposit amounts into any
qualifying savings account if such account holds an amount that is
greater than or equal to the amount that is 10 percent of the area
median value of a single-family home in the area where the eligible
prospective borrower who owns such account resides.
(c) Requirement.--To be eligible to receive amounts under this
section, an eligible prospective borrower must have completed
homeownership counseling provided by a HUD-certified housing counseling
agency.
(d) Use of Amounts.--An eligible prospective borrower who receives
amounts under this section may only use such amounts for--
(1) a downpayment associated with the purchase of a single-
family home;
(2) title insurance and other closing costs associated with
the purchase of a single-family home;
(3) real estate agent commissions associated with the
purchase of a single-family home;
(4) appraisal and inspection fees associated with the
purchase of a single-family home;
(5) loan origination fees associated with the purchase of a
single-family home; or
(6) qualified home repairs, to be reported to the Secretary
through a disclosure form.
(e) Recapture of Amounts.--
(1) Second mortgage.--The amount provided to a participant
under this section shall be considered a second mortgage on the
home, as described in this subsection.
(2) Term.--The term of the second mortgage shall be equal
to 36 months.
(3) Reductions.--The amount of the second mortgage shall be
reduced by 1/36th on the last day of each month of occupancy
following the date of the disbursal of the amount.
(4) Recapture.--If the participant sells or stops living in
the home, the participant shall owe to the Secretary the amount
due on the second mortgage as of the date that the home is sold
or vacated.
(f) Termination.--The program established under this section shall
terminate on the date that is 5 years after the date of the enactment
of this section.
(g) Report.--The Secretary of Housing and Urban Development shall,
not later than 180 days after the date described in subsection (e),
submit a report to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing and Urban Affairs
of the Senate a report on the effectiveness of the pilot program
established under this section that includes--
(1) the total number of participants that enrolled in the
program;
(2) the average amount saved by participants and the total
amount of matching funds disbursed;
(3) the number of participants who successfully closed a
transaction to purchase a single-family home using amounts
provided through the program;
(4) data on income levels, racial and ethnic backgrounds,
and zip codes of participants;
(5) a comparison of mortgage default rates between program
participants and a control group of non-participant first-time
buyers in the same areas;
(6) an evaluation of the effectiveness of the institutions
managing qualifying savings account in managing such accounts;
(7) the percentage of participants that used amounts
provided under this section for qualifying repairs and the
average cost of such repairs; and
(8) an assessment of whether the pilot program established
under this section helped participants have the amounts
required to purchase single-family home.
(h) Definitions.--In this section:
(1) Eligible prospective borrower.--The term ``eligible
prospective borrower'' means a person who--
(A) is a citizen of the United States;
(B) is 18 year of age, or older;
(C) is a first-time homebuyer, as such term is
defined in section 104 of the Cranston Gonzalez
National Affordable Housing Act;
(D) has not more than $75,000 in liquid assets, as
determined by the Secretary; and
(E) earns not more than 120 percent of the area
median income in the area in which the person resides.
(2) Qualifying home repairs.--The term ``qualifying home
repairs'' means home repairs made after an inspect to address
health, safety, or structural integrity issues identified in a
certified home inspection report that are recommended by a
third-party, licensed home inspector and completed not later
than 20 days of the date on which the purchase transaction for
the home closed.
(3) Qualifying savings account.--The term ``qualifying
savings account'' means a savings account opened by an eligible
prospective borrower at an insured depository institution or an
insured credit union.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
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