Congresswoman Teresa Leger Fernández, D-N.M., released the following statement ahead of Vice President Kamala Harris’ speech to accept the Democratic nomination for President of the U.S. Harris’ housing plan would provide down payment assistance to first-time homebuyers. This plan closely mirrors Leger Fernández's Home of Your Own Act (H.R. 8714) and a $750,000 pilot program she funded for Homewise to do exactly this. New Mexico has implemented similar homeownership programs for decades cobbling together funds from different sources. Significantly, New Mexico has the highest rate of Latino homeownership in the country.
Harris and Leger Fernández both recognize that first-time homebuyers often don’t have the money up front. The promise of a tax credit or deduction months after the home purchase doesn’t help. That’s why both their plans highlight the importance of assistance at the time a person actually buys their home because steep down payment costs have become an obstacle, even when a first-time homebuyer has the income to pay the mortgage.
“The American Dream of homeownership is out of reach for too many hard working families," Leger Fernández said. "Many pay their rent on time every month but don’t have the funds for big down payment costs on a house they can call home."
Leger Fernández explained how her Home of Your Own Act'is already helping New Mexicans.
“Too many families can’t afford a house where they grew up and in the communities they work in and love," she said. "Vice President Harris’ housing plan is about more than getting by, it’s about getting ahead. Her housing proposal is similar to my ‘Home of Your Own Act’ which builds on the success we’ve shown in New Mexico helping first-time homebuyers. In fact, the program I funded at Homewise is already helping New Mexicans build their futures and buy their first home.”
Finally, Leger Fernández showed her support for Harris.
“We can do this," she said. "We can build generational wealth. We can build financial security. We can help more families move into their home of their own. We can elect Vice President Kamala Harris as President of the United States."
Harris' historic $25,000 down-payment assistance plan will:
- Provide working families who have paid their rent on time for two years and are buying their first home up to $25,000 in down payment assistance with more generous support for first-generation homeowners.
- Help over four million first-time buyers over four years to receive down payment assistance.
- Creates a new national homeownership assistance grant program at the U.S. Department of Housing and Urban Development, which would help at least one million first-time homebuyers.
- Provides one-time, $30,000 homeownership assistance grants to eligible first-time homebuyers who earn up to 120-150% of the area median income depending on the area.
- Provides flexible financial assistance to homebuyers that can be used for down payment costs, closing costs, mortgage interest rate reduction, and/or necessary repairs prior to move-in.
- Streamlines assistance to underserved communities by empowering community development financial institutions to partner with states to administer at least 25% of the funds to homebuyers.
- Prepares participants for homeownership by requiring participants to complete a homeownership financial counseling program prior to receiving financial assistance.
- Dedicates homeownership grant funds to all 50 states, U.S. Territories (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the Virgin Islands), and the District of Columbia.
- Sets aside 3% of the authorized funding as homeownership grant funds for tribal entities.
- If the home is sold within five years, the remaining financial assistance reverts back to create a revolving fund to help other first-time homebuyers.
- Authorizes $33.5 billion for the grant program over five years with $6.7 billion authorized per year.
