By Phil Ganz
Edited by Ryan Skerritt
Donald Trump’s 2024 first-time homebuyer program is a significant part of his housing policy, focused on making homeownership more accessible for Americans.
While details are still emerging, we know that the program includes tax incentives, deregulation, and opening federal lands for new home construction to increase the supply of affordable homes.
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What Is Donald Trump's New First-Time Homebuyer Program?
Donald Trump’s new first-time homebuyer program is designed to make it easier and more affordable for people to buy their first home.
The program focuses on lowering costs, increasing the availability of homes, and offering financial incentives to support first-time buyers.
For a contrasting approach to housing policy, you might also be interested in Kamala Harris's initiatives, which offer a different perspective on addressing housing challenges.
Next, let's go over the entire program platform in detail:
Trump Will Give Tax Incentives to First-Time Homebuyers
Trump’s proposed program includes tax incentives specifically designed to support first-time homebuyers.
If we were to estimate the potential tax incentives under Trump’s proposed program, we might look at similar past initiatives for guidance. For example, the First-Time Homebuyer Credit from 2008 offered a tax credit of up to $7,500, which was later increased to $8,000.
Given Trump’s focus on substantial tax cuts in previous policies, it's reasonable to estimate that the tax incentives could be in the range of $10,000 to $12,000, adjusted for inflation.
These incentives may include deductions or credits that reduce the overall cost of purchasing a home, making homeownership more attainable for those who are entering the market for the first time.
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Trump Will Roll Back Housing Regulations
Another significant aspect of Trump’s proposal is the plan to rescind “unnecessary” housing regulations.
We expect that that Trump may:
- Roll back environmental review regulations.
- Ease zoning laws to allow higher housing density.
- Relax building codes and standards.
- Simplify the permitting process.
- Reduce affordable housing mandates for developers.
By reducing the regulatory burden on the housing market, the administration aims to lower construction costs and speed up the development process.
For first-time homebuyers, this deregulation could lead to more affordable housing options and faster access to new homes.
Trump Will Preserve "Traditional Neighborhoods"
In 2020, Trump and former HUD Secretary Ben Carson made it clear they want to keep local zoning rules that protect single-family home neighborhoods.
Trump’s plan to keep these rules in place is part of his current housing proposals.
For first-time homebuyers, this means that while new homes will be built on federal lands, existing neighborhoods will stay the same. If you buy a home in one of these areas, you can expect the neighborhood to keep its familiar look and feel.
This approach ensures that your new home is in a stable, established area, giving you peace of mind that the neighborhood won’t change drastically over time.
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Trump Plans to Open Federal Lands for New Home Construction
One of the central components of Trump’s housing proposal is the opening of portions of federal lands for new home construction.
By making these lands available for residential development, the initiative aims to increase the supply of affordable homes in areas where housing demand is high.
For first-time homebuyers, this could mean more opportunities to purchase homes at lower prices, especially in regions where land scarcity has driven up costs.
Trump is Deceasing Housing Discrimination Protections
Trump’s administration changed the rules around something called "disparate impact liability," which used to make it easier to challenge housing practices as unfair, even if they weren’t intentionally discriminatory.
By raising the bar for proving these claims, developers and builders now face fewer legal obstacles when creating new housing projects.
The big benefit of this change is that it can speed up the construction of new homes because developers aren’t bogged down by lengthy lawsuits.
With more homes being built more quickly, the increased supply can drive down home prices, making it more affordable for first-time buyers to enter the market.
Trump May End The Mortgage Oversight of Fannie Mae and Freddie Mac
If Trump ends the government oversight of Fannie Mae and Freddie Mac, first-time homebuyers could benefit in several ways.
The mortgage market might see more competition, leading to better interest rates and more innovative loan options tailored to first-time buyers.
Without strict regulations, Fannie Mae and Freddie Mac could introduce new mortgage products with lower down payments or more flexible terms.
Additionally, private lenders might offer more personalized services, helping buyers find loans that fit their specific financial situations.
First-Time Homebuyer Grants & Programs Available Right Now
You don’t have to wait for new policies to take effect—there are excellent first-time homebuyer grants and programs available right now that can help you get into your dream home sooner.
Here’s a list of the best grants and programs currently available to help you on your path to homeownership:
1. Florida Hometown Heroes Program
- Benefit: Receive up to $35,000 in assistance for down payments and closing costs.
- Additional Perks: Enjoy a lower first mortgage interest rate if you’re eligible, thanks to over $100,000,000 in funding from the state of Florida.
- Requirements: Must be a first-time homebuyer employed in or serving the community where you intend to purchase the home, meet certain income limits, have a credit score of at least 620, and complete a homebuyer education course.
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- Benefit: Access a lower minimum down payment, as low as 3.5%.
- Additional Perks: Ideal for buyers with lower credit scores or higher debt-to-income ratios, this program also offers the potential for a lower interest rate, making it easier to qualify for a mortgage.
- Requirements: Must meet FHA credit score requirements, purchase a home that meets FHA property standards, and pay mortgage insurance premiums.
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3. FHFA First-Time Home Buyer Discount
- Benefit: Enjoy automatic mortgage rate discounts of up to 1.75 percentage points on conventional 30-year fixed-rate mortgages.
- Additional Perks: This discount can reduce your monthly mortgage payments by up to 20%, making homeownership more affordable.
- Requirements: Must be a first-time homebuyer utilizing a conventional 30-year fixed-rate mortgage.
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If you're interested in exploring even more options, we have a comprehensive guide covering all 25 first-time homebuyer grants and programs available in Florida.
Want to find the perfect fit for your needs?
Check out our detailed guide here to learn more.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
