Representative Rich McCormick (R-GA) recently introduced the Own Not Rent Act, legislation aimed at expanding homeownership opportunities by allowing state governments to guarantee portions of mortgages to allow for smaller down payments without mortgage insurance.
How will the Own Not Rent Act benefit new homebuyers? Also known as House Resolution 10784, this bill will help first-time homebuyers save for a down payment, reduce financial barriers, and incentivize the construction of new homes.
The legislation’s other primary objectives are to establish tax-advantaged down payment savings accounts, expand penalty-free retirement withdrawals for first-time homebuyers, and provide new tax incentives for homebuilders constructing owner-occupied housing.
What Rep. Rich McCormick had to say:
- “The fact that the median age of a first-time homebuyer has reached 40 years old is unacceptable. Hardworking Americans are doing everything right, yet the dream of owning a home remains out of reach.
- “Homeownership is one of the most important ways families build financial security and generational wealth. The Own Not Rent Act removes financial barriers, helps families save, and encourages the construction of homes Americans can actually own.
- “We should be helping the next generation build their futures, not forcing them to remain renters.”
What else does the Own Not Rent Act do? It would:
- Allow eligible first-time homebuyers to make up to $25,000 in annual tax-deductible contributions, with a maximum account balance of $100,000.
- Increase the lifetime limit on penalty-free retirement withdrawals for qualified first-time home purchases from $10,000 to $25,000.
- Permit tax-advantaged employer contributions to employees' down payment savings accounts.
- Provide eligible homebuilders a tax credit equal to 35 percent of qualifying construction costs for newly built owner-occupied homes.
- Encourage qualifying state-backed mortgage insurance and guarantee programs.
Does this bill have any notable support? The bill so far has only been endorsed by the National Association of REALTORS (NAR). Rep. McCormick is also the only sponsor, but that is likely to change within the next few months as the bill circulates the House floor and relevant committees.
