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First-time homebuyers could soon get a new way to find $35,000 for a down payment

fastcompany.com · 17h · first reportShare

Trump’s new savings accounts for kids just went live last month, but they’re not the only interesting investment change in the mix this year. With a new bipartisan bill known as the First-Time Homebuyer Empowerment Act, lawmakers want to empower first-time homebuyers to tap into a portion of their college savings accounts for a down payment. Colorado Democrat Michael Bennet and Ohio Republican Jon Husted introduced the bill in the Senate earlier this month. If passed, it could give some families looking to afford a home a big boost – but that’s a big if. If it becomes law, the First-Time Homebuyer Empowerment Act would let anyone with a 529 education savings account transfer up to $35,000 out for a down payment on their first home, free of penalties. The special rule would apply to leftover savings in the accounts, which help families pay for college and related expenses. Usually any leftover cash in a 529 is restricted to educational uses like graduate school, trade school, or student