The Federal Housing Finance Agency has approved policies and pilots to reduce closing costs for homeowners, including a pilot to waive the requirement for lender’s title insurance on certain refinances. Lowering Closing Costs for Refinancing.And today, the President is announcing new actions to lower the closing costs associated with buying a home or refinancing a mortgage. Last year, the Department of Housing and Urban Development (HUD) reduced the mortgage insurance premium for Federal Housing Administration (FHA) mortgages, saving an estimated 850,000 homebuyers and homeowners an estimated $800 per year. The President isn’t waiting for Congress to lower costs for homebuyers and homeowners. This proposal is estimated to help 400,000 families purchase their first home. The President continues to call on Congress to provide up to $25,000 in down payment assistance to first-generation homebuyers whose families haven’t benefited from the generational wealth building associated with homeownership. ![]() Down Payment Assistance for First-Generation Homeowners.This proposal is estimated to help nearly 3 million families. The President is calling on Congress to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter home, defined as homes below the area median home price in the county, to another owner-occupant. This “lock-in” effect makes homeowners more reluctant to sell and give up that low rate, even in circumstances where their current homes no longer fit their household needs. Many homeowners have lower rates on their mortgages than current rates. This is the equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home, and will help more than 3.5 million middle-class families purchase their first home over the next two years. The President’s plan also calls for a new credit to unlock inventory of affordable starter homes, while helping middle-class families move up the housing ladder and empty nesters right size. President Biden is calling on Congress to pass a mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. President Biden is calling on Congress to enact legislation to enable more Americans to purchase a home, including: Too many working families feel locked out of homeownership and are unable to compete with investors for a limited supply of affordable for-sale homes. That is why President Biden has a landmark plan to build over 2 million homes, which will lower rents, make houses more affordable, and promote fair housing.įor many Americans, owning a home is the cornerstone of raising a family, building wealth, and joining the middle class. But rent is still too high, and Americans who want to buy a home still have difficulty finding one they can afford. More housing units are under construction right now than at any time in the last 50 years, rents have fallen over the last year in many places, and the homeownership rate is higher now than before the pandemic. President Biden also announced new steps to lower homebuying and refinancing closing costs and crack down on corporate actions that rip off renters. During his State of the Union Address, President Biden will call on Congressional Republicans to end years of inaction and pass legislation to lower costs by providing a $10,000 tax credit for first-time homebuyers and people who sell their starter homes build and renovate more than 2 million homes and lower rental costs. ![]() President Biden believes housing costs are too high, and significant investments are needed to address the large shortage of affordable homes inherited from his predecessor and that has been growing for more than a decade.
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