Housing affordability in the United States is a growing problem. But nowhere is this more true than in the Bay Area, and this problem certainly is acute among first-time homebuyers.
To help ease the burden on first-time homebuyers, the incoming Biden administration has proposed the First Down Payment Tax Credit. Under the terms of the proposal, they would be eligible for a refundable and advanceable tax credit of up to $15,000.
Here’s how it works…

What is it?

The First Down Payment Tax Credit builds off of a temporary tax credit expanded as part of the Recovery Act between 2008-2010. While the Recovery Act credit maxed out at $8,000, Biden’s proposal extends up to $15,000. (This, in short, reflects the increases in home prices nationwide over the past decade.)

Who is eligible?

Based on what we know, the program will be available to any individual or family who has not purchased a home before.

How would it work?

According to the proposal, the money would be advanced to buyers at closing, so recipients would not have to wait until filing their tax returns before collecting. In addition, it is currently unclear how individual grant amounts would be calculated.

To sum up: for those interested in learning more, this policy proposal is just one of the Biden administration’s housing plans.

And if you’re curious to learn more about buying your first home, don’t hesitate to contact us!

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