An article summarized by Axios:
A new draft bill from Senators, Jeff Merkley and Ron Wyden, would give eligible first-time homebuyers up to $50,000 toward a down payment. The Homeownership Promise Act would provide a 5-to-1 federal match for money saved by buyers, meaning someone who saves $10,000 could receive another $50,000 from the federal government.
The proposal comes as higher mortgage rates and housing costs have made it harder for many Americans to buy homes. Unlike recent bipartisan housing legislation that focused primarily on increasing construction, this bill would directly boost buyers' purchasing power. There would be no income limit, but buyers would have to purchase a home at or below the median price in their area and save through participating Community Development Financial Institutions.
The bill is still only a proposal, and Axios reports it faces significant hurdles in the current Republican-controlled Congress. Supporters argue that helping people build larger down payments could expand access to homeownership, while critics could point to the possibility that additional purchasing power increases demand and pushes home prices higher if housing supply doesn't keep up. A previous federal first-time-homebuyer program following the financial crisis provided an $8,000 tax credit.
