WASHINGTON–Credit unions are lining up to support the Home of Your Own Act, which would offer one-time $30,000 grants to help first-time homebuyers.  

According to its proponents, the national program would seek to build on the success of a pilot program in New Mexico that was administered by Homewise and made possible by a $750,000 Community Project Funds grant.

“The 17 homes purchased in the district so far are a  testament to the fact that this program is already working for New Mexicans,” said Rep. Teresa Leger Fernández, who is among the co-sponsors on the bill.

Other co-sponsors include Reps. Jim Costa (D-CA), Chuy García (D-IL), Robert Garcia (D-CA), Lois Frankel (D-FL), Hank Johnson (D-GA), Betty McCollum (D-MN), Eleanor Holmes Norton (D-DC), Delia Ramirez (D-IL), Mary Gay Scanlon (D-PA), and Melanie Stansbury (D-NM).

“Young adults whose parents bought a starter home now don’t see the same future for themselves. Even workers with good jobs face hurdles affording a down payment and closing costs. The Home of Your Own Act would create a national homeownership grant program to help address this housing crisis,” the cosponsors said in a statement, adding the grants would go to eligible first-time homebuyers who earn up to 120%-150% of the area median income.

Credit Union Support

In their statement, the members of Congress said the bill has been endorsed by America’s Credit Unions, Credit Union Association of New Mexico, Homewise, Local Initiatives Support Corporation, National Association of REALTORS, National NeighborWorks Association, and UnidosUS. 

What Bill Would Do

In addition to the downpayment assistance, the proponents said the legislation:

• Streamlines assistance to underserved communities by empowering community development financial institutions to partner with states to administer at least 25% of the funds to homebuyers.
• Prepares participants for homeownership by requiring participants to complete a homeownership financial counseling program prior to receiving financial assistance.
• Dedicates homeownership grant funds to all 50 States, U.S. Territories (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, & United States Virgin Islands), and the District of Columbia.
• Sets aside 3% of the authorized funding as homeownership grant funds for Tribal entities.
• Authorizes $33.5 billion for the grant program over five years with $6.7 billion authorized per year.

CU Statements

“Too many families across the country face barriers to achieve the American dream of homeownership due to housing affordability issues. We greatly appreciate Rep. Leger Fernandez for introducing the Home of Your Own Act, which aims to fix this growing problem. CDFI certified credit unions stand ready to support the mission of affordable home ownership in addition to providing much-needed community assistance to consumers who are underserved, have a modest income, or live in distressed communities. America’s Credit Unions looks forward to working with Rep. Leger Fernandez to advance this important legislation,”  Carrie Hunt, chief advocacy officer, America’s Credit Unions, said in a statement. 

“We are proud to have one of our own – Representative Teresa Leger Fernandez – introduce the Home of Your Own Act.  Prioritizing legislation that aims to address the housing affordability crisis will certainly benefit those in the Land of Enchantment. We endorse this legislation and look forward to its advancement to help families achieve home ownership,”  Melia D. Heimbuck, president & CEO, Credit Union Association of New Mexico, said in a statement.