Harris to Propose $25K Down Payment Aid for First-Time Homebuyers

Vice President Kamala Harris is set to present her economic policy proposals in Raleigh, North Carolina, on Friday. Among the key features of her plan is a significant initiative aimed at assisting first-time homebuyers with down payment support of up to $25,000.

The proposal intends to offer financial assistance to working families who have consistently paid their rent on time for the past two years and who are purchasing their first home. The Harris-Walz administration promises enhanced support for first-generation homeowners, indicating a focus on helping those who may face more challenges in entering the housing market.

The campaign emphasizes the struggles many Americans face while trying to save for a home. “Many Americans work hard at their jobs, save, and pay their rent on time month after month. But they can’t save enough after paying their rent and other bills to save for a down payment — denying them a shot at owning a home and building wealth,” a campaign statement revealed. The plan also aims to increase the availability of entry-level homes, making it easier for families to achieve homeownership.

Previously, the Biden-Harris administration proposed a similar initiative that would include $25,000 in down payment assistance for 400,000 first-generation homebuyers, along with a $10,000 tax credit for first-time home buyers. The Harris campaign claims this plan will simplify and broaden access to down payment assistance, potentially benefiting over 1 million first-time buyers annually, which includes those buyers from families with no prior homeownership history.

Prior to Harris’ announcement, officials provided insights into the housing segment of her strategy, which aims to alleviate the ongoing housing supply shortage. The plan includes an ambitious goal of constructing 3 million new housing units while preventing Wall Street investors from purchasing homes in bulk.

Additionally, the Vice President plans to unveil a $40 billion innovation fund, which is double the size of the previous $20 billion Biden-Harris proposed innovation fund. This fund would be allocated to local governments, promoting innovative solutions for housing construction and financing. Furthermore, it would make certain federal lands available for transformation into new housing developments.

According to the campaign, Harris intends to collaborate with workers and the private sector to address the nation’s housing needs, both in rental and ownership sectors. The focus will be on removing obstacles that hinder the development of new housing at both state and local levels, which is anticipated to lead to reduced rents and mortgage costs.

Furthermore, Harris is advocating for two legislative initiatives: the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act and the Stop Predatory Investing Act. These measures aim to tackle the influence of corporate and large landlords, seeking to curb excessive pricing practices.

As the housing crisis affects a significant portion of the population, the Harris-Walz administration’s proposals aim to bring relief to working families and facilitate homeownership opportunities. By pledging financial assistance and promoting new housing developments, the administration hopes to create a more equitable housing market where individuals and families can build wealth and thrive.

Source: ABC News