Downpayment Toward Equity Act of 2025

Summary

Downpayment Toward Equity Act of 2025 This bill establishes a grant program through the Department of Housing and Urban Development (HUD) for states and other entities to provide qualifying assistance to low-income, 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 modifications to a home to accommodate persons with disabilities. Grant amounts are generally limited to the greater of $20,000 or 10% of the purchase price of the home. HUD may increase the cap for socially and economically disadvantaged homebuyers or for purchases in high-cost areas. The bill also establishes grant requirements regarding home buyer income, types of housing, homeowner occupancy, types of mortgages, and home buyer counseling.