How the White House Wants to Help You Buy a Home

By: Anneken Tappe · March 12, 2024 · Reading Time: 2 minutes

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.

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