New bill would help first-time buyers amid pandemic

A new bill introduced to Congress this week aims to help first-time home buyers purchase a home during and after the recovery from the COVID-19 crisis.

The First Time Homebuyer Pandemic Savings Act, introduced by Rep. Sean Patrick Maloney (D-N.Y.), would allow first-time home buyers to withdraw funds from their retirement accounts under the umbrella of COVID-19-related distributions to help with the purchase of a home. Under the bill, up to $25,000 of the coronavirus-related distributions would be tax-exempt and penalty-free if put toward a down payment for a home.

“Making sure the next generation of homeowners have the resources they need to buy their first home is going to play a big role in our economic recovery,” Maloney said. “This bill is a smart, innovative way to bring new opportunity to new home buyers and help young families get one step closer to realizing the American dream.”

The bill has gotten the thumbs-up from the National Association of Realtors, which has called on members of the House of Representatives to co-sponsor and support it.

“While various barriers have stood in the way of homeownership for younger generations, COVID-19 has pushed the American dream further out of reach for countless families and individuals by no fault of their own,” said Vince Malta, president of NAR. “This legislation would make a tremendous difference to those struggling to save for the down payment on their all-important first home. With homeownership remaining one of the best and most sustainable ways for Americans to build wealth, the nation’s 1.4 million realtors applaud Rep. Maloney for his leadership.”