How the White House Wants to Help You Buy a Home

Homeownership is a milestone for many, and a cornerstone of building generational wealth. But that dream has been complicated by a tricky housing market with high costs and low inventory. Now the Biden administration wants to help tackle the problem.

The White House last week proposed a plan to give first-time home buyers and starter-home sellers a $10,000 tax credit.

10,000 Reasons for Homeownership

The proposal aims to break down barriers for first-time buyers, and incentivize existing homeowners to sell and boost the supply of potential starter homes.

Here’s what that could look like: For first-time homebuyers, it would come in the form of a $5,000 tax credit per year over two years, which the Department of Housing and Urban Development says is equivalent to a more than 1.5% reduction in mortgage rates. For starter-home sellers, the proposal outlines a one-year $10,000 tax credit.

President Biden has also called Congress to enact down payment assistance to encourage home buying.

Is This Real?

If it’s passed, this legislation could potentially change the barriers to entry many buyers are facing in the current housing market. But to do so, it has to get through Congress first, and that’s not going to be without challenge.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS24031201