On Tuesday, Congressman Salud Carbajal unveiled the American Dream for All Act, seeking to create a five-year pilot program at HUD to provide states, territories, and tribes with funding to offer first-time homebuyers downpayment assistance.
"I have so many clients who are first-time homebuyers or would-be home buyers that are paying more in rent than their mortgage would be and the barrier for them really is the down payment," said Lynn Robinson, local real estate professional and business owner.
Robinson was one of many real estate professionals who joined Rep. Carbajal at Tuesday's press conference in Santa Barbara as he announced the legislation.
"We know that homes are the most significant factor in wealth generation, so the more we put people into homes, the more we grow our middle class, the more it helps our economy, and the more it increases the quality of life of residents here on the Central Coast and throughout the country," Carbajal said.
The program would offer qualified buyers a loan of up to 20% toward a down payment, which is only repaid when the home is sold or refinanced, plus an additional matching percentage of the home's appreciation when sold.
"And let me be clear, the assistance isn't a handout," Carbajal stated.
Funds from repayments of those loans would be reinvested back into the program to fund future loans for homebuyers.
"This is not just a one-time loan program. It’s going to be continuing for generations to come," said Stacey Schalde, SLO Coastal Association of Realtors President.
According to the National Association of Realtors, in 2024, first-time homebuyers decreased to a historic low of 24% of sales, a decrease from 32% in 2023.
An eligible borrower must meet the following criteria:
- (1) is a citizen or permanent resident of the US,
- (2) is a first-time homebuyer and/or first-generation homebuyer,
- (3) has completed a buyer education course,
- (4) has a certificate of completion from a housing counseling agency, and
- (5) has an income not more than 150% of the area median income (AMI), must self-attest that they can’t pay more than 5% of the total value of the home for which the loan under this section is used.
