Down payment accounts: How a new bill will help first-time home buyers, lawmakers say
Maddie Biertempfel
DC News Now
March 23, 2026
The American dream of homeownership starts with a down payment, but many Americans don’t have the savings.
Lawmakers are trying to make that easier with a new bill to create tax-deferred down payment savings accounts.
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Subramanyam and Iowa Republican Congresswoman Ashley Hinson are teaming up to try to make it easier to save for a home.
“People kept saying, ‘I’m struggling to save money. Things are tight right now. And how do I get enough in my bank account where I can actually afford to make a down payment?’” Rep. Hinson (R-IA) said.
The bipartisan “First Home Savings Opportunity Act” would create tax-deductible accounts for first-time buyers.
If passed, individuals can contribute up to $10,000 a year, and couples filing jointly can contribute $20,000. Money in the account must then go toward a down payment or closing costs.
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Voters like the idea, according to Shannon McGahn, the National Association of Realtors’ (NAR) chief advocacy officer.
“Eighty-four percent support having tax-free savings for down payments, and that’s across party lines,” McGahn said, referring to a NAR survey.
She says the NAR’s recent polling shows the median age of a first-time buyer is now 40.
“A decade ago, that was 30 [years old]. That’s about $150,000 of equity that is missing from the market when you look at 30 versus 40-year-olds purchasing that first-time home,” McGahn said.
Hinson says she and Subramanyam are working to get their bill a vote in committee.
“Got to get it passed. There’s too many people waiting for that opportunity,” Hinson said.
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