President Biden To Pitch First-Time Buyer, Starter Home Credits

• March 7th 2024

by UrbanTurf Staff

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President Biden will pitch a number of new housing initiatives at tonight's State of the Union address. 

The president will propose a mortgage relief credit that would provide middle-class, first-time homebuyers with an annual tax credit of $5,000 for two years. The White House states that this will be the "equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home."

The President will also call on Congress to pass a tax credit of up to $10,000 to middle class families who sell their starter home. The starter home -- a home priced below the area median home price in the county -- must be sold to another owner-occupant. 

"Many homeowners have lower rates on their mortgages than current rates," The White House said in a release. "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."

In addition to these two initiatives, the president will also pitch down payment assistance for first generation homeowners and lower closing costs for mortgages and refinancing.

This article originally published at https://dc.urbanturf.com/articles/blog/president_biden_to_pitch_first-time_buyer_starter_home_credits/22048.