Downpayment Toward Equity Act of 2025

This bill would help first‑generation, first‑time homebuyers afford a home. HUD would run a national grant program that sends money to states and certain organizations. The help can cover down payments, closing costs, lower interest rates, and some accessibility changes, and it can support permanently affordable homes. The aim is to narrow long‑standing gaps in homeownership.

To qualify, buyers must meet income limits (generally up to 120% of area median, or 140% in high‑cost areas) and plan to live in a 1–4 unit home. They must complete homebuyer counseling before buying. Grants are one‑time and usually capped at the greater of $20,000 or 10% of the purchase price, with possible higher amounts for disadvantaged buyers or in high‑cost areas. If you move out within five years, you may have to repay part of the help; no payback after five years, and there are hardship protections.

• Who is affected: First‑generation, first‑time buyers (including people who were in foster care) whose spouse or partner has not owned a home in the past 3 years; income limits apply.
• What the money can cover: Down payment, closing costs, interest‑rate reductions, accessibility changes before moving in, and discounts that keep some homes affordable long‑term.
• How much help: Up to the greater of $20,000 or 10% of the price; one time per buyer; HUD may allow larger amounts for disadvantaged buyers or in high‑cost areas.
• What you must do: Live in the home as your primary residence, complete counseling, and stay at least 5 years to avoid repayment; you can combine this help with other aid you qualify for.
• Funding and timing: Authorizes $100 billion for grants; HUD sets the program rules; funds stay available until used.