Home of Your Own Act of 2025
The Home of Your Own Act of 2025 creates a new federal grant program under the Department of Housing and Urban Development (HUD) to help states and Indian tribes support first-time homebuyers. Each year, HUD would provide funds that states and tribes could use to give eligible homebuyers up to $30,000 to cover down payments, closing costs, and other costs, including pre-occupancy repairs or modifications to make a home suitable. The program is designed to work alongside existing mortgage programs and can be stacked with other sources of funding. Homebuyers must meet income and other eligibility rules, and recipients must occupy the home as their primary residence for at least five years (60 months) or face a proportional repayment, with limited exceptions. The bill also requires financial counseling before receipt of aid, mandates a portion of funds go through community development financial institutions (CDFIs), and provides specific administrative and funding guidelines for states and tribes. In short, the bill aims to expand affordable homeownership by providing up to $30,000 per eligible buyer through a HUD-grants program to states and tribes, with structured rules on allocation, use, repayment, counseling, and oversight, and with a strong emphasis on tribal participation and use of CDFIs.
Key Points
- 1Establishes a HUD-administered Homeownership Assistance Grant Program that provides up to $30,000 per eligible person to help purchase an eligible home, including down payments, closing costs, rate reductions, and pre-occupancy repairs or modifications for accessibility.
- 2Allocation structure: 3% of appropriations are reserved for Indian tribes under a formula aligned with NAHASDA; the remainder is equitably allocated to participating states by a Secretary-established formula.
- 3Recapture and liens: if the homeowner does not occupy the home as their primary residence for the 60-month period, the recipient must repay the assistance proportional to the time not lived in the home, with limited exceptions (hardship or if the sale price is less than original cost). The state or tribe may place a lien to recapture and must use recaptured funds to assist other eligible buyers.
- 4Administration and financial counseling: states and tribes must submit annual implementation plans and distribute at least 25% of their funds through community development financial institutions; a financial counseling program approved by HUD (or the relevant state/tribe) is required before receiving assistance.
- 5Funding and administration: authorizes $6.7 billion annually for fiscal years 2026–2030 to carry out the act; caps on administrative costs (7% for states, 10% for tribes) and 3% for training and technical assistance; program design permits outsourcing to approved nonprofits or CDFIs.