What's the Neighborhood Homes Investment Act All About?
- Author: Ben Reilly
- Posted: 2025-01-13
It's called the Neighborhood Homes Investment Act, and it's all about making it easier for people to afford homes.
If it becomes law, it would mean a whopping $26 billion boost focused on two main things: building or fixing up homes ($16 billion) and helping people with their down payments ($10 billion).
So, What Exactly Is It?
Introduced in 2023, this act is a big plan supported by both major political parties.
Its goal? To make homes more affordable by building or renovating around 400,000 houses and offering extra help with down payments, especially for people buying their first home or those not rolling in cash.
This help includes a significant $10 billion for down payments and a smaller, $100 million pilot program specifically aimed at helping first-time homebuyers from less wealthy backgrounds.
Senator Ben Cardin and other supporters believe everyone deserves a decent and affordable place to live. This act aims to make that a reality by revitalizing neighborhoods and making homeownership accessible for more people, thus allowing them to build wealth over time.
Why Do We Need It?
Simply put, there aren't enough homes for sale, and the ones that are available are often too pricey, thanks in part to continuously climbing mortgage rates.
Many folks who already own homes aren't willing to sell because they've locked in lower mortgage rates than what's currently available. This shortage of options is holding the housing market back.
Has the Act Been Passed?
As of the beginning of 2025, the act hasn't been passed yet. It still needs the green light from Congress and the President.
While there's hope it might be approved soon, there's no definite timeline, and it could face delays or even get turned down.
Other Help on the Horizon
Besides the Neighborhood Homes Investment Act, there are other proposed laws waiting in the wings that could also make it easier to buy homes.
One is a tax credit offering up to $15,000 for first-time homebuyers, and the other is a $25,000 grant to help cover down payments.
Check out: Proposed $15,000 First-Time Home Buyer Tax Credit Sparks Hope for Affordable Housing in 2025
Help for First-Time Buyers Right Now
Even without these new laws, there are already some ways to get help if you're looking to buy your first home. From state assistance programs to special mortgage loans designed with first-time buyers in mind, there's quite a bit of support available.
For example, there are loans that require low down payments, some with special terms for first-time buyers, and others aimed at veterans or people buying in rural areas.
Every state has different programs and resources, so it's worth checking out what's available where you live. And if you're ready to start your home-buying journey, talking to a local lender can be a great first step.
In Summary
The Neighborhood Homes Investment Act, if passed, could really shake things up by making more homes available and more affordable.
But even before any new laws come into effect, there are options out there to help first-time buyers get into a home of their own.
If you're thinking about buying, now's a good time to look into what help you might qualify for.
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