Although it could drive up the cost of houses, the Biden administration has a plan to help people become first-time homeowners through a First Down Payment Tax Credit.
The program, which would provide first-time homeowners with up to $15,000 toward a down payment, is one of many housing-related proposals that President Joe Biden spoke of during his presidential campaign.
The program, which would also address racial inequities, encourage energy efficiency, would help frustrated renters overcome obstacles related to homeownership such as not having enough money saved for a down payment.
A tax credit to supplement down payments “could be helpful to those particular homebuyers who didn’t quite have the money to build up a down payment and closing costs,” Miriam Axel-Lute, editor of the housing publication Shelterforce, NerdWallet reported.
Meanwhile, according to Nerd Wallet, Biden’s proposed tax credit would benefit people who can qualify for a loan based on their credit scores and debt-to-income ratios.