HR7244-119

What This Bill Does

The First-Time Home Buyers Match Act directs HUD to establish a pilot within one year. Each year during the five-year pilot, HUD deposits into qualifying savings accounts for 20,000 eligible prospective borrowers an amount equal to the lesser of 50 percent of what the participant deposited that year or $5,000. HUD cannot deposit additional funds once the account holds at least 10 percent of the area median value of a single-family home where the borrower lives. Participants must be U.S. citizens, at least 18, first-time homebuyers under the Cranston-Gonzalez definition, have no more than $75,000 in liquid assets, earn no more than 120 percent of area median income, and complete HUD-certified homeownership counseling. Funds can be used for a down payment, title insurance, closing costs, real estate agent commissions, appraisal and inspection fees, loan origination fees, or qualified home repairs identified in a certified inspection report and completed within 20 days after closing. HUD assistance is treated as a 36-month second mortgage forgiven by 1/36 each month of occupancy; if the participant sells or stops living in the home, the remaining balance is owed to HUD. Within 180 days after the pilot ends, HUD must report to Congress on enrollment, savings, matching funds, successful home purchases, participant income, race, ethnicity, zip codes, default rates against a control group, account manager effectiveness, repair use, and whether the pilot helped participants assemble purchase funds.

Who Benefits and How

First-time homebuyers, moderate-income renters saving for a home, HUD-certified housing counseling agencies, insured depository institutions, insured credit unions, real estate agents, home inspectors, and mortgage lenders benefit from matched savings, defined eligible uses, counseling, and a forgivable second mortgage that can support down payments and closing costs. Participants who stay in the home for 36 months receive full forgiveness.

Who Bears the Burden and How

HUD program staff, participating borrowers, account-holding banks, credit unions, housing counseling agencies, mortgage servicers, federal taxpayers, and participants who sell or move within 36 months must comply with eligibility checks, account monitoring, HUD-certified counseling, second-mortgage servicing, repair disclosure forms, demographic reporting, default-rate comparisons, and repayment obligations if occupancy ends early. Borrowers must use funds only for listed purchase or repair costs and must occupy the home for 36 months to receive full forgiveness.

Key Provisions

• Creates a five-year HUD first-time homebuyer matched-savings pilot for 20,000 participants per year.
• Matches the lesser of 50 percent of annual participant savings or $5,000.
• Bars further deposits once the account reaches 10 percent of the area median single-family home value.
• Requires U.S. citizenship, first-time buyer status, asset and income limits, and HUD-certified homeownership counseling.
• Limits fund uses to down payments, closing costs, real estate commissions, appraisal, inspection, origination fees, and qualifying repairs.
• Treats assistance as a 36-month forgivable second mortgage with repayment if the participant sells or vacates early.
• Requires a post-pilot congressional report on participation, demographics, purchases, defaults, account managers, repairs, and effectiveness.