Reintroduced Bill Could Give New Homeowners Up To $15,000 For Down Payment Assistance
By Ralph DiBugnara
Originally published by Forbes · Forbes Real Estate Council
A reintroduced piece of legislation could dramatically change the calculus for millions of first-time homebuyers across the country. The Downpayment Toward Equity Act — known as the DASH Act — would provide eligible buyers with up to $15,000 in refundable tax credits to help cover down payment and closing costs.
For many Americans, the down payment remains the single biggest barrier to homeownership. With home prices elevated and savings stretched thin by inflation, a $15,000 credit could be the difference between continuing to rent and finally owning a home.
What Is the DASH Act?
The Downpayment Toward Equity Act is a federal bill that would create a refundable tax credit of up to $15,000 for first-generation, first-time homebuyers. The credit is designed to help cover down payment and closing costs — two of the largest upfront expenses in a home purchase. Unlike a deduction, a refundable credit means buyers could receive the full amount even if their tax liability is less than $15,000.
Who Qualifies?
To be eligible, buyers must be first-time homebuyers — defined as not having owned a home in the past three years — and first-generation homebuyers, meaning neither parent nor guardian owned a home during the buyer's upbringing. Income limits also apply, generally capping eligibility at 120% of the area median income, with higher thresholds in high-cost markets.
Why This Matters Now
The timing of this legislation is significant. Mortgage rates have remained elevated compared to the historic lows of 2020 and 2021, and home prices in most markets have not meaningfully corrected. For buyers who are otherwise qualified — good credit, stable income — the down payment gap is often the last obstacle. A $15,000 credit directly addresses that gap.
Ralph DiBugnara's Take
"This is one of the most meaningful pieces of housing legislation I've seen proposed in years," says Ralph DiBugnara, President of Home Qualified. "The down payment is the number one reason qualified buyers stay on the sidelines. A $15,000 credit doesn't just help with the purchase — it gives buyers breathing room to cover closing costs and still have reserves after closing. That's a real game changer."
What Buyers Should Do Now
The bill has not yet been signed into law, so buyers shouldn't wait for it before starting the homebuying process. Instead, use this time to get pre-approved, work on your credit score, and build savings. If the DASH Act passes, you'll be positioned to take full advantage. In the meantime, explore existing state and local down payment assistance programs — many offer grants and forgivable loans that don't require repayment.
Other Down Payment Resources to Know
Beyond the DASH Act, first-time buyers have access to a range of programs today. FHA loans allow down payments as low as 3.5% with a 580 credit score. Fannie Mae's HomeReady and Freddie Mac's Home Possible programs offer 3% down for qualifying buyers. Many states and municipalities also offer their own assistance programs, some of which can be stacked with federal programs for even greater impact.
The down payment is the number one reason qualified buyers stay on the sidelines. A $15,000 credit doesn't just help with the purchase — it gives buyers breathing room to cover closing costs and still have reserves after closing.
The Bottom Line
The DASH Act represents a meaningful step toward closing the homeownership gap for first-generation buyers. If passed, it would be one of the most impactful federal housing programs in recent memory.
Don't wait for legislation to start your journey. The best time to prepare is now.
Get pre-approved, understand your options, and connect with a financing expert who can help you navigate every available program — whether or not the DASH Act becomes law.