By Phil Ganz
Edited by Ryan Skerritt
As housing prices and mortgage rates remain high, the Neighborhood Homes Investment Act could offer much-needed help for homebuyers.
This proposed plan would invest $16 billion to build more homes and set aside $10.1 billion to help with down payments, making it easier for first-time and low-income buyers to afford a home.
See Which Down Payment Assistance Programs You Qualify For
Here’s a look at what the act aims to do, who could benefit, and when it might become available.
What is The Neighborhood Homes Investment Act?
The Neighborhood Homes Investment Act aims to make it easier for people to buy homes by investing $16 billion to build and fix up houses.
This funding could add about 400,000 homes, according to the White House.
The plan also includes $10 billion for down payment help and a special program with $100 million for first-time homebuyers from low-income backgrounds or first-generation buyers.
With an estimated $40,000 in aid per home, the Neighborhood Homes Investment Act represents a substantial boost toward making homes more affordable for moderate- and low-income buyers.
This funding not only covers part of the construction and renovation costs, reducing the financial burden on developers but also enables housing providers to keep prices within reach for families who might otherwise be priced out.
By effectively lowering the upfront cost of each home, this act aims to expand access to safe, stable housing, helping families build equity and strengthen communities across the country.
See Which Down Payment Assistance Programs You Qualify For
Status Update: Has the Neighborhood Homes Investment Act Passed?
As of November 2024, the NHIA remains under congressional review and has yet to be signed into law.
Although the bill enjoys bipartisan support, it is anticipated that further discussions will extend into 2025, particularly given the focus on tax reforms expected to expire that year.
The timing for final approval remains uncertain, but stakeholders remain hopeful about the act’s future.
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Additional Legislative Proposals for Homebuyers
Several proposed programs in Congress aim to make homeownership more accessible, especially for first-time and underserved buyers.
Kamala Harris $25,000 First-Time Homebuyer Grant
- Up to $25,000 for down payments and closing costs
- Targets first-time buyers, especially disadvantaged groups
- Pending approval in Congress
$25,000 Down Payment Toward Equity Act
- Provides up to $25,000 for first-time, first-generation buyers
- Focuses on low- to moderate-income households
- Aims to address racial and economic disparities in homeownership
- Still awaiting legislative approval
Trump’s 2024 First-Time Homebuyer Program
- Tax incentives for first-time homebuyers
- Plan to reduce housing regulations and open federal land for housing
- Focus on preserving single-family neighborhoods
- Designed to increase housing supply and affordability
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Existing Down Payment Assistance Programs
For buyers seeking immediate assistance, a range of existing programs offer valuable support to help cover upfront costs and make homeownership more affordable.
Florida Hometown Heroes Program
- Up to $35,000 in down payment and closing cost assistance
- Available to professionals like teachers, healthcare workers, and firefighters
- Offers lower mortgage interest rates
Verify Your Hometown Heroes Eligibility
FHA Loan Program
- Down payments as low as 3.5%
- Accepts lower credit scores and higher debt-to-income ratios
- Provides competitive interest rates for first-time buyers
Verify Your 0-Down 100% FHA Loan Eligibility
Good Neighbor Next Door (GNND) Program
- 50% discount on homes in designated areas
- Available to teachers, law enforcement officers, firefighters, and EMTs
- Requires a 36-month primary residence commitment
Bottom Line
In a challenging housing market with high prices and rising mortgage rates, the Neighborhood Homes Investment Act and other proposed initiatives offer a hopeful path forward.
These programs aim to provide crucial financial support to homebuyers, expand affordable housing, and remove barriers for first-time and low-income buyers.
While the Neighborhood Homes Investment Act is still under review, existing options like the Florida Hometown Heroes Program, FHA loans, and the Good Neighbor Next Door Program already provide significant resources to help Americans achieve homeownership.
As we await further progress on these proposed acts, prospective buyers can benefit from exploring current programs to make their path to owning a home more accessible and affordable.
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.
