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A new Senate proposal would match a first-time buyer's down payment savings $5 for every $1 saved, up to $50,000 in federal money.
This could be a significant boost to homebuyers who struggle to afford a down payment in a market where home prices remain high despite this fall's higher mortgage rates.
But like any new federal program, this one has a rocky path to become reality.
...in as little as 3 minutes — no credit impact
The newest proposal: the Homeownership Promise Act
Sen. Jeff Merkley (D-Ore.) introduced the Homeownership Promise Act on September 23, 2026, with Sen. Ron Wyden (D-Ore.) as cosponsor. Instead of a tax credit, this measure would create a new kind of savings account, called a Homeownership Promise Account, run through the Department of Housing and Urban Development (HUD).
Here's how the match would work as written:
| Term | Details |
|---|---|
| Federal match | $5 for every $1 you personally save |
| Maximum federal match | $50,000 |
| Maximum contributions | $10,000 combined from you, an employer, or a nonprofit |
| What gets matched | Only your personal savings, not employer or nonprofit money |
| Who qualifies | Buyers 18 or older who have never owned a principal residence and complete HUD-approved housing counseling |
| Income limit | None in the bill text |
| Home price limit | At or below the area's median single-family home price, as set by HUD |
| Where the account is held | A Treasury-certified community development financial institution (CDFI), such as a community development bank or credit union |
| When the match is paid | At closing, toward the purchase |
In practice, a buyer who saves $4,000 would receive a $20,000 match, for $24,000 total. A buyer who saves the full $10,000 would receive $50,000, for $60,000 total.
Example is for illustrative purposes only. Rates, payments, and total interest will vary based on credit profile, loan terms, and market conditions.
A few details matter for real buyers. A couple buying together would share one account and one $60,000 cap. You could withdraw your own savings at any time, but the match is paid only at closing, and only toward a home priced at or below your area's median.
The bill has two sponsors and has not received a committee vote. Like every bill in the current session, it would expire when the 119th Congress ends in January 2027 unless it passes first.
Two different $50,000 proposals: a savings match vs. a tax credit
You may see "$50,000 for first-time buyers" in more than one headline. Two separate bills use that number, and they work very differently.
| Feature | Homeownership Promise Act (2026) | Bipartisan American Homeownership Opportunity Act (2025) |
|---|---|---|
| Type of help | Federal savings match | Refundable tax credit |
| How the amount is set | $5 per $1 you save, up to $50,000 | Equal to your down payment, up to $50,000 |
| When you'd get the money | At closing | When you file taxes, with an option for advance payment |
| Income limits | None | Phases out above $150,000 (single), $225,000 (head of household), or $300,000 (joint) |
| Key restriction | Home priced at or below the area median | Credit may need to be repaid if you sell, rent out, or stop living in the home within five years |
| Status | Introduced September 2026 | Introduced May 2025 |
A refundable tax credit pays out even if it's larger than the tax you owe. The practical difference is timing: a match paid at closing helps with cash at the closing table, while a credit claimed at tax time reimburses money you've already spent unless you take the advance payment.
Other homebuyer bills still pending in Congress
Two other proposals remain active in the 119th Congress:
- The Make American Housing Affordable (MAHA) Act. Introduced in January 2026 by Rep. Tom Kean Jr. (NJ-07) and co-led by Rep. Ryan Mackenzie (PA-07), this bill would create a $5,000 tax credit for individual filers and $10,000 for joint filers buying a primary residence. The full credit applies below $250,000 in income for individuals and $500,000 for joint filers, phasing out completely at $300,000 and $600,000. It isn't limited to first-time buyers and could be claimed once every five years.
- The First-Time Homebuyer Tax Credit Act. Reintroduced in the Senate in July 2025, it proposes a refundable credit of up to $15,000 for eligible first-time buyers, tied to area income limits.
Congress did pass a major housing law in July 2026, the 21st Century ROAD to Housing Act. That law focuses on increasing housing supply and limiting large investor purchases of single-family homes. It doesn't include a tax credit or direct down payment money for buyers.
None of the buyer-focused bills above has become law. Federal homebuyer credits and grants are expensive at scale, and cost has stalled similar proposals across several sessions of Congress. Follow these bills, but don't build a purchase plan around them.
What first-time buyers can actually use right now
The absence of a federal credit doesn't leave buyers without options. These programs are active today:
- Down payment assistance programs. According to recent industry data, more than 2,600 state, county, and city programs are active nationwide, offering an average of about $18,000. Some are grants that never need to be repaid. Most have income limits and first-time buyer requirements. Learn more about how down payment assistance works.
- FHA loans. Loans backed by the Federal Housing Administration (FHA) allow down payments as low as 3.5% with a credit score of 580 or higher. They require mortgage insurance, a monthly charge that protects the lender. Compare the options in our guide to FHA vs. conventional loans.
- Conventional loans with 3% down. Programs backed by the government-sponsored enterprises allow as little as 3% down for buyers who meet income requirements.
- VA and USDA loans. Eligible veterans and buyers in qualifying rural areas may be able to buy a house with no down payment.
- Mortgage credit certificates (MCCs). Offered through many state housing finance agencies, an MCC turns part of the mortgage interest you pay each year into a federal tax credit, often 20% to 40% of that interest, capped at $2,000 per year when the rate is above 20%. Unlike the proposals above, MCCs exist today.
- Penalty-free IRA withdrawals. First-time buyers can withdraw up to $10,000 from a traditional IRA without the usual 10% early-withdrawal penalty. Income taxes still apply.
To see how much cash you might need, start with how much down payment you need for a house.
...in as little as 3 minutes — no credit impact
How to qualify as a first-time buyer
For FHA loans, most state assistance programs, and many conventional programs, a first-time buyer is someone who hasn't owned a principal residence in the past three years. That means some past homeowners can qualify again.
The Homeownership Promise Act would be stricter. As written, it requires that you have never owned a principal residence, so the three-year rule wouldn't apply.
Your parents' or family members' ownership history doesn't affect your status. Only your own name on a deed or mortgage counts. If you're unsure where you stand, our guide on how to qualify for a home loan as a first-time buyer walks through the requirements.
Should you wait for a bill to pass before buying?
For most buyers who are financially ready, waiting on legislation carries more risk than reward.
Consider the cost of waiting. If you pay $2,000 a month in rent, a six- to 12-month wait costs $12,000 to $24,000 in rent that doesn't build equity. Even the largest proposal could take far longer than that to pass, if it passes at all. Mortgage rates can also change while you wait. The average 30-year fixed rate is now around 7.5%, more than a full percentage point higher than a year ago.
Example is for illustrative purposes only. Rates, payments, and total interest will vary based on credit profile, loan terms, and market conditions.
That doesn't mean you should rush. The better question is whether a home that fits your budget makes sense at today's rates, using the help that exists today. Run your numbers with the mortgage calculator, then get pre-approved to see your actual rate and price range. Better's pre-approval is fully online, so you can see where you stand without committing to a lender.
Frequently asked questions
Is there a first-time homebuyer tax credit I can claim if I buy a house in 2026?
No. The last federal first-time homebuyer credit expired in 2010, and none of the 2026 proposals has become law. You can't apply for or claim any of them today. Our article on the first-time homebuyer tax credit explains how the earlier federal credits worked.
If I save $10,000 in a Homeownership Promise Account, would I really get $50,000 from the government?
Under the proposal as written, yes. Your $10,000 in personal savings would draw the maximum $50,000 match, paid at closing. But the bill hasn't passed, and its terms could change if it moves forward. Employer or nonprofit contributions would count toward the $10,000 cap without being matched.
I owned a condo eight years ago. Would I count as a first-time buyer under the new $50,000 bill?
Probably not under the Homeownership Promise Act, which requires that you've never owned a principal residence. You would likely still count as a first-time buyer for FHA loans and many state assistance programs, which generally use a three-year lookback.
What's the difference between the $50,000 down payment match and the $50,000 down payment tax credit?
The Homeownership Promise Act matches your savings $5 to $1 and pays the money at closing, with no income limit. The Bipartisan American Homeownership Opportunity Act would give a refundable tax credit equal to your down payment, up to $50,000, with income phase-outs and possible repayment if you leave the home within five years. Neither is law.
I'm planning to buy next spring. Should I wait to see if one of these bills passes?
Waiting is a gamble. None of these bills has passed a committee vote, and any that don't pass by January 2027 would have to be reintroduced. If your budget works now, programs that exist today are a more reliable foundation than proposed legislation.
My partner and I are buying together. Would we each get $50,000 under the new bill?
No. As written, one or two buyers share a single Homeownership Promise Account, so a couple would share one $10,000 contribution cap and one $50,000 match.
Could a $50,000 down payment program push home prices higher?
It's possible. Large down payment subsidies can increase demand for modestly priced homes, which could push prices up where supply is tight. The bill's cap at the area median price targets entry-level homes, which is also where buyer competition tends to be strongest.
I only have about 3% saved. What help can I get today?
Several options are open now. Conventional loans can require as little as 3% down, FHA loans 3.5%, and state or local down payment assistance can cover part of the rest. The tips for first-time home buyers guide covers how to combine them.
The bottom line
A $50,000 down payment match is now on the table in Congress, alongside several homebuyer tax credit proposals.
None is law, and none is close to it.
Home shoppers should treat these bills as something to watch, and build your plan around what's available now: down payment assistance, low-down-payment loans, and a real pre-approval number.
...in as little as 3 minutes — no credit impact