# The Downpayment Toward Equity Act of 2023

This bill creates a new federal program to help first-time homebuyers afford down payments on homes. The core idea is straightforward: the government would give money to states and nonprofit organizations, which would then distribute it to eligible buyers to help them purchase their first home. The bill specifically aims to address the racial homeownership gap in America, recognizing that certain groups have historically faced barriers to buying homes.

**Who can get help and how much?**

To qualify, you'd need to be a first-generation homebuyer—meaning neither you nor your spouse owned a home before (with some exceptions for people who were in foster care). Your household income would need to be no more than 120 percent of your area's median income, or up to 140 percent if you're buying in an expensive housing market. The assistance would come as a grant (money you don't have to repay) of up to $20,000 or 10 percent of the home's purchase price, whichever is greater. The money could cover down payments, closing costs, or even help lower your mortgage interest rate. If you're buying through a special affordable housing program called shared equity homeownership, different rules apply.

**What's the catch?**

If you move out of the home or stop using it as your primary residence within five years, you'd have to repay a portion of the assistance on a sliding scale—the longer you stay, the less you owe. However, if you face a genuine hardship or sell the home for less than what you'd owe back, you might not have to repay anything. Before getting assistance, you'd also be required to complete homeownership counseling to learn about managing a mortgage and your responsibilities as a homeowner.

**How would it work in practice?**

States would receive 75 percent of the funding through a formula based on how many eligible buyers live there and local home prices. The remaining 25 percent would go to nonprofits, community banks, and local governments that work with low-income and minority communities. The bill requires detailed tracking of who receives help—including their race, ethnicity, and where they live—to ensure the program actually closes the racial homeownership gap rather than just helping a narrow group. The bill authorizes $100 billion for this program, though Congress would need to actually appropriate the money for it to happen.

Downpayment Toward Equity Act of 2023

Waters, Maxine

Downpayment Toward Equity Act of 2023 This bill establishes a grant program through the Department of Housing and Urban Development for states and other entities to provide qualifying assistance to certain first-time, first-generation home buyers in purchasing their first homes. Qualifying assistance includes assistance for mortgage down payments, mortgage closing costs, reduction of mortgage interest rates, subsidies for shared equity homes, or for certain preoccupancy modifications to a home to accommodate persons with disabilities. The bill also establishes grant requirements regarding home buyer income, types of housing, homeowner occupancy, types of mortgages, and home buyer counseling.