New Neighborhood Homes Investment Act Aims to Boost Affordable Homeownership Opportunities

The Neighborhood Homes Investment Act is a new proposal that could make it easier and cheaper for people to buy homes. It's especially focused on areas where house prices are low and homes need repair. 

The government is thinking about spending $16 billion to build and fix up about 400,000 homes. Plus, they want to give $10 billion to help people make down payments on their homes. 

If you're buying a home for the first time and don't have a lot of money, this could be a big help.

Senator Ben Cardin, one of the people supporting the idea, said it's all about making sure families can afford a nice place to live. He believes it will help people in the community make money from their homes, and it will also make neighborhoods nicer.
 

Why Is This Important Now?

Lately, it's been tough to find homes for sale. Also, the cost of borrowing money for a house (known as mortgage rates) has gone up a lot, making it even harder for people to buy homes. The new law is designed to help with these problems.
 

Has the Law Been Passed?

As of the start of 2025, this law hasn't been approved yet. It needs to get a green light from all parts of the government before it becomes official. We can't say exactly when that will be, but it might happen in the next couple of years.

Experts say it's good that people from different political sides like this idea. It's set up to work kind of like another law that helps build apartments for people with lower incomes. 

Since some tax rules are about to change at the end of 2025, the government may look at this idea when they think about what to do next.
 

Any Other Help on the Way?

Yes, there might be. There are two other laws being considered that could help people buy their first home. One could give up to $15,000 to help with taxes, as long as you don't sell your house too quickly. The other one could give $25,000 to help with the down payment on a house.

Check out: Proposed $15,000 First-Time Home Buyer Tax Credit Sparks Hope for Affordable Housing in 2025
 

What About Right Now?

Even if these new laws haven't passed yet, there are still ways to get help buying your first home. 

Different states have programs and special loans to make it easier.

Here's a quick look at some loans for first-time buyers:
 

• FHA Loans: You can have a lower credit score (580) and you only need to put down a small percentage of the home's price (3.5%-10%).
• Conventional 97: A slightly higher credit score (620) is needed, but the down payment is still low (3%).
• Home Possible and HomeReady: Both require a credit score of 620 or higher, a 3% down payment, and you'll have to take a class about owning a home.
• USDA Loans: If you're in a rural area, you might not need any down payment at all, but your income has to be within a certain limit.
• VA Loans: For veterans and service members, you often don't need a down payment, but the requirements vary.

 

More Help for Your Down Payment

There are also down payment assistance programs in every state that might work for you, even if you're not buying a home for the first time. These can give you the extra money you need upfront.
 

What Should You Do?

If the Neighborhood Homes Investment Act gets passed, it could make a big difference by adding more homes for sale and helping with down payments. 

But you don't have to wait for it – start checking out the home buying help that already exists. There are guides and local lenders that can help you step-by-step.
 

Ready for a home?

If buying a house is your goal, you can talk to local lenders now to see what mortgages and programs you qualify for. They'll help you find the best option for your situation.

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Related read: What You Need to Know About Getting a Conventional Home Loan in 2025