S.Amdt. 4323

The Downpayment Toward Equity Act of 2026 is an amendment intended to be added to bill H.R. 6644. Its purpose is to establish a grant program managed by the Secretary of Housing and Urban Development to help first-generation homebuyers purchase owner-occupied primary residences.

The amendment aims to add the following to the bill:

• Financial Assistance: It authorizes $100,000,000,000 in appropriations to provide grants to States (75%) and eligible entities (25%). These funds can be used for:

  • Downpayment and closing costs.
  • Reducing mortgage loan interest rates.
  • Subsidies for shared equity homes.
  • Home modifications for individuals with disabilities.

• Eligibility Requirements: To receive assistance, a qualified homebuyer must:

  • Be a first-time homebuyer and a first-generation homebuyer.
  • Meet specific income limits (generally not exceeding 120% of the area's median income, or 140% in high-cost areas).
  • Complete a homeownership counseling program.

• Grant Limits: Assistance is generally limited to the greater of $20,000 or 10 percent of the purchase price, though the Secretary may increase this for high-cost areas or individuals who are socially and economically disadvantaged.

• Accountability and Oversight: The amendment requires the Secretary to:

  • Submit annual public reports on the demographics and types of assistance provided.
  • Recapture and reallocate funds from grantees who cannot spend them timely or fail to distribute them equitably across racial and ethnic groups.
  • Conduct a study with the Attorney General to determine if there is a history of housing discrimination and recommend remedies.