A recent bill aimed at helping would-be homeowners has been proposed by Congressman Sean Maloney (D-NY). If passed, the First Time Home Buyer Pandemic Savings Act would allow first time home buyers to withdraw funds for the use of purchasing a home from retirement accounts under the umbrella of coronavirus related distributions. Concern has been building over the younger generation’s ability to purchase a home. The economic impact of the Covid-19 has only heightened those concerns and depleted the savings of many would-be home buyers.
The proposed bill would allow a maximum withdrawal of $25,000 towards a down payment. The funds would then be penalty free and tax exempt as long as they are utilized in the home purchase. Rep. Maloney recognizes the importance of home ownership in the economic recovery efforts. The National Association of Realtors is calling on the U.S. House of Representatives to support the bill.
In the Phoenix housing market, the inventory for entry level homes has been tightening and the market is increasingly competitive. A buyer’s ability to put more money down on a home could very well be the key factor during negotiations that determines whether someone is a homeowner or a renter. Home ownership provides significant financial opportunities over time. With interests rates remaining low, now might be the perfect time for first time home buyers to take the plunge. The Home Buyer Pandemic Savings Act could provide long term renters with the help they need to transition to home ownership.
As your trusted Real Estate source, we are keeping our eye on this bill. Check back here for updates!