Press Releases

Today, Congressman Mark Alford (MO-04), alongside Reps. Tracey Mann (KS-01), Lou Correa (CA-46), and Tom Barrett (MI-07) introduced the First-Time Homebuyer Empowerment Act. This bill would allow first-time homebuyers to use leftover 529 plan funds tax-free to buy or build their first home, giving buyers more options to use their tax-advantaged savings. This legislation aims to remove barriers first-time homebuyers face in putting up a down payment and increase access to the housing market for future homeowners. 

“Every American deserves a fair shot at owning a home," said Rep. Alford. "Too many first-time buyers are working hard and saving yet still can’t reach the down payment. This commonsense bill gives families more flexibility to use their existing savings in tax advantaged accounts, opening the door to the American Dream.” 

“Homeownership is the heart of the American Dream," said Rep. Mann. "The ability to provide a safe, stable place to raise a family is so important for the future of our country. Today, too many young Americans feel that owning a home continues to become more and more out of reach. Our legislation gives people more flexibility on how to use their savings, opening up pathways for more Americans to own equity in their homes."

“This bill would give hard-working American taxpayers on Main Street greater flexibility to put the money they’ve earnestly saved toward one of the largest investments they can make—buying a home,” said Rep. Correa. “In Orange County and across our state, housing has only become more unaffordable. This would mark an important step toward giving aspiring home-owners across the country the tools they need to build and sustain financial stability—for themselves and their children.”

“Too many families can’t afford homes that work for them, plain and simple,” said Rep. Barrett. “An easy first step towards changing that reality is to let homebuyers tap into unused college savings in their 529 accounts and put them towards purchasing their first home. I’m proud to join my colleagues on this legislation to incentivize saving for the future and help the next generation achieve homeownership.”

The First-Time Homebuyer Empowerment Act is supported by the National Association of Realtors, National Association of Homebuilders, Mortgage Bankers Association, Institute of Real Estate Management, Kansas Association of Realtors, Missouri Realtors, Iowa Association of Realtors, Michigan Association of Realtors, and California Association of Realtors.

“NAHB commends Reps. Mann, Alford and Correa for introducing the First Time Home Buyer Enhancement Act, legislation that would allow first-time home buyers to use funds from their 529 savings accounts to buy their first home," said Buddy Hughes, Chairman of National Association of Home Builders. "Saving for a downpayment is a major barrier for first-time home buyers and this bill would help hard-working families to get a toe hold on the homeownership ladder.”

"Downpayment hurdles continue to block many families from owning a home," said Bill Killmer, Senior Vice President of Legislative & Political Affairs at Mortgage Bankers Association. "The First-Time Home Buyer Empowerment Act provides a common-sense solution that empowers first-time buyers to use their own savings—at no cost to taxpayers. MBA looks forward to supporting this and other efforts in Congress to expand sustainable homeownership.”

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