Latest news with #firsttimehomebuyers
Yahoo
3 days ago
- Business
- Yahoo
How to save for a down payment
Key takeaways There are many strategies to save for a down payment, including maximizing your savings, reducing everyday expenses and applying for down payment assistance. You don't have to save 20 percent for a down payment on a home. Conventional mortgages require just 3 percent down, and FHA loans require only 3.5 percent down. More than half (52 percent) of aspiring homeowners cite the down payment and closing costs as a 'very significant' obstacle to homeownership, according to a Bankrate survey. More than half (52 percent) of aspiring homeowners cite the down payment and closing costs as a 'very significant' obstacle to homeownership, according to Bankrate's 2025 Home Affordability Report. Here are our top ways to save for a down payment, advice on how much to put down and a rundown of other costs to consider. How much do you need for a down payment? Most mortgage down payment requirements are far lower than the oft-heard 20 percent. Here's how the different loan types compare: Loan type Minimum down payment Minimum credit score Mortgage insurance Conventional loan 3% 620 Private mortgage insurance with a down payment of less than 20% FHA loans 3.5% for credit scores 580 and up/10% for credit scores 500-579 580/500 FHA mortgage insurance with a down payment of less than 20% VA loan None Varies by lender, but generally 620 None USDA loan None Varies by lender, but generally 640 None Jumbo loan 10%-20% Varies by lender, but often 700 Varies by lender Of course, your minimum down payment is just one piece of the puzzle. The cost of the home you buy will also be a major factor in your down payment. While the median home price in the U.S. was a record-setting $435,300 in June, according to the National Association of Realtors (NAR), the home price you can expect to find varies by region and even metro area. For example, the median home price in the West in June was $636,100, but the median in the Midwest was $337,600, and the median home price in Detroit was $293,900. Once you've decided how much home you can afford, you can start deciding how much to put down on your house and making a savings plan for your down payment. What's the typical down payment on a home? The median down payment for all homebuyers is 18 percent, according to the National Association of Realtors. First-time homebuyers make a median down payment of 9 percent. Learn more: How much should you put down on your house? How to save for a down payment: 8 ways There are several ways to save for a house: 1. Park the savings in a high-yield account While you might be worried about mortgage rates that are much higher than they were in recent years, the current interest rate environment is great news for your savings. Select banks and credit unions are paying upwards of 4 percent APY on deposits. If your money is currently stashed in an account that pays minimal interest, think about moving it to a: High-yield savings account: High-yield savings accounts offer significantly higher earning potential than standard savings accounts. Some currently pay between 4 and 5 percent, as opposed to 0.01 percent at some big-name banks. Money market account: Money market accounts are a cross between a checking and savings account that may offer higher rates than standard savings accounts. Certificate of deposit (CD): CDs are fixed-rate savings products with fixed terms. You make a deposit and earn a set return until the maturity date arrives. But before signing up for a CD, keep your homebuying timeline in mind. If you're planning to buy in the next year, and you put your savings in an 18-month CD, you'll likely pay a penalty for withdrawing the money early. On the other hand, if you have a few years before you plan to buy, consider doing a CD ladder to account for changing interest rates and avoid being tied into a single, long-term CD. 2. Automate your savings With this approach, you'll set up automated deposits of a portion of your income into an account for your down payment. For employees with a regular paycheck, you can ask your employer to split your direct deposits between your down payment and other accounts. For freelancers, contractors or business owners, you can schedule a regular, automatic transfer to your down payment account. 3. Explore additional sources of income If you have the spare time and energy, another income source or a side hustle can help you save for a down payment. You might even be able to turn a hobby into a money-making proposition. 4. Look for down payment assistance programs Down payment assistance could be an option if you're struggling to save, especially if you're a first-time buyer. This assistance can come in various forms, from deferred or forgivable loans to grants. Each program has different eligibility requirements, usually based on income and location. Start your search with your area's local or state housing authority. 5. Reduce your expenses If you're saving for a house, cutting back on your spending can help. Here's how: Lower discretionary spending. These are expenses like subscription services, entertainment, delivery services or eating out. While you won't want to cut out this spending entirely, consider ways to spend less. Save money on your bills. If possible, negotiate recurring monthly or annual expenses, such as shopping around for a better rate on car insurance or reducing an internet bill. Pay down existing debt. A lower debt load will make you a better candidate for a mortgage, and once you've eliminated these payments, you can redirect money to your down payment fund. While not an option for everyone, if you're able to, moving back into your parents' house or moving in with a roommate can help you save for a down payment as well. Nearly one-quarter (24 percent) of aspiring homeowners willing to do something to find more affordable housing would take this step, according to our 2025 Home Affordability Report. 6. Request a raise While each company's financial situation and performance measures vary, you might be able to get paid more, especially if you've made valuable contributions at work recently. Come to the discussion prepared, outlining the work you've done and how it impacted the company's bottom line. 7. Ask for a gift Many first-time homebuyers have turned to family members for help with a down payment. If a family member or friend is willing to give you some funds for your home, be sure to document this in a gift letter for your lender. 8. Reprioritize your savings goals Your down payment isn't the only reason you're stashing money away. As you think about buying a home, take a holistic look at your finances. If you're young, and you regularly contribute to a 401(k) or an IRA, consider reducing those contributions temporarily and saving more for your home purchase. Just remember to save enough to qualify for your company match, if you have one — and resume your former contributions once you've met your down payment savings goal. Don't forget your emergency fund It's important to keep your down payment savings separate from your emergency fund, which should contain three to six months of living expenses. Unless you have much more in this account than you need, it shouldn't fund your down payment. Once you buy a home, you'll need that extra cushion to deal with the routine maintenance and repairs that come with being a homeowner. How long should you plan to save for a down payment? How long you should save for a down payment depends on how much money you're putting down and how much you can set aside each month. Location plays a big role in your savings goal. A 10 percent down payment on a house in San Jose, California, is going to be larger than one for the same house in Jackson, Mississippi. Timing is another important factor when saving for a house. You might opt to put less money down and pay a higher mortgage rate in exchange for owning a home sooner. To see how much your down payment will affect your monthly mortgage payment, run the numbers with our mortgage down payment calculator. Other costs to save for when buying a home While the down payment is the biggest homebuying expense for most people, there are other costs you need to factor in, including: Closing costs: Closing costs might include an origination fee, title insurance fee, appraisal fee and more. These typically cost 2 to 5 percent of your mortgage's principal amount. Mortgage reserves: Depending on your credit or financial situation, your lender might require you to have several months' worth of mortgage payments in reserves. Maintenance and other hidden expenses: The typical single-family home costs more than $18,000 a year in costs like maintenance, repairs, homeowners insurance, property taxes and energy bills, according to Bankrate's 2024 Hidden Costs of Homeownership Study. Moving expenses: Depending on the distance and amount of stuff you're moving, the costs can add up. Methodology For Bankrate's Home Affordability Report: The survey on down payments was conducted by YouGov Plc. between Jan. 15-17, 2025. Total sample size was 2,408 adults, of which 1,270 were homeowners. The survey was carried out online. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results. The survey on homeownership and the American Dream was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,317 adults. Fieldwork was undertaken between March 6-8, 2024. The survey was carried out online. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results. For Bankrate's Hidden Costs of Homeownership Study: Bankrate's Hidden Costs of Homeownership Study analyzes the average annual expenses associated with owning and maintaining a single-family home nationwide and in every state in 2024 compared to 2020. Bankrate defines those expenses as costs that go beyond a mortgage, including property taxes, homeowners insurance, energy costs, internet and cable bills and home annual nationwide and statewide home maintenance costs were estimated using the 2 percent rule of thumb multiplied by national and statewide median sale prices for single-family homes as of March 2020 and March 2024. Bankrate accessed Redfin's national and statewide median sale price data for single-family homes as of March 2020 and March 2024 on May 1, 2024. Average annual national and statewide electric bills, which include electricity, natural gas, propane and fuel oil or kerosene costs, were collected using 2020 data from the U.S. Energy Information Administration. Average annual national and statewide internet and cable bills were collected using 2021 and 2023 data from bill payment company Doxo. Average annual national and statewide property taxes were collected using 2020 and 2022 data from ATTOM, a provider of nationwide property data. Bankrate used national and statewide 2020 and 2021 data from the National Association of Insurance Commissioners (NAIC) to aggregate average annual homeowners insurance accurately determine hidden homeownership expenses in 2024, Bankrate adjusted the most up-to-date national and statewide figures for property taxes, energy costs, internet and cable bills and homeowners insurance premiums for inflation using the Consumer Price Index. In the 2020 portion of the analysis, national and statewide 2021 figures for internet and cable were converted to 2020 dollars using the Consumer Price Index. Bankrate's study did not include mortgage payments or any other monthly expenses or debts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News24
11-08-2025
- Business
- News24
Inclusive property ownership tips you should know about
Co-owning, rent-to-own and fractional ownership are inclusive solutions for potential first-time homeowners. Owning part of a property still makes you a real property owner. Don't underestimate the power of stokvels and a clear mindset when saving. Owning a home has always felt like the ultimate symbol of financial success for many. Something you work towards for years after following the traditional script of graduating, getting a stable job, building credit, saving up a deposit and then finally buying a home. Seems simple enough, yet this model has quickly become outdated. The skyrocketing cost of living, barely livable wages and job uncertainty make home ownership feel like a distant dream for the majority of South Africans. Palesa Masiteng, CEO of fractional property ownership platform FracProp, unpacks alternative ways to get one step closer to property ownership. Other ways to be a first-time property owner The world is rapidly changing, and what we need are flexible, inclusive property models like co-owning, rent-to-own and fractional ownership. Palesa tells TRUELOVE that first-time property ownership 'could look like owning a fraction of a short-term rental property in Cape Town, co-investing in a development fund with your community or stokvel group or even leveraging AI-driven platforms to make smarter decisions such as our financial wellness platform, MyFinWell - which offers credit assessments, budgeting guidance, debt restructuring and financial education'. Fractional ownership There's a myth that property ownership is for the rich, the debt-free or those lucky enough to inherit wealth. Another myth? You must own an entire property to really be a property owner. These outdated ideas are pushed by financial institutions and society, but they're just not true anymore. Palesa describes fractional ownership as one that 'allows multiple people to co-own a property by purchasing a portion or 'fraction' of it. This model lowers the financial barrier to entry and gives individuals access to high-value, income-generating real estate they would never afford on their own'. Rent-to-own Other inclusive property owning models, like rent-to-own, give people the chance to gradually pay towards a full purchase of property. 'Rent-to-own, on the other hand, allows tenants to gradually buy the property they live in by paying rent that partially contributes to the purchase. Both models challenge the traditional idea that you need a bond and a big deposit to own. The benefits include affordability, flexibility, and early access to capital growth,' Palesa says. A fresh way to save and plan Saving for a home often feels like a mountain that's impossible to climb. With rising living costs and stagnant wages, it's easy to feel stuck. But there are smarter ways to build toward ownership, even when money's tight. 'The first step is shifting your mindset from survival to strategy, regardless of income level,' Palesa advises. 'Start with a clear savings goal tied to a real asset, like property, instead of simply saving for emergencies. Use budgeting tools, banking apps or stokvels to create consistency. Even if you can only save R100 a month, channel that money into a structured vehicle like FracProp where your savings aren't just sitting, they're working for you.' Palesa adds, 'Stokvels and savings groups across the country are sitting on billions in untapped capital but they're boxed into saving just for emergencies.'
Yahoo
24-07-2025
- Business
- Yahoo
Best housing markets for first-time homebuyers
Best housing markets for first-time homebuyers Affordability is just one component of buying a new home. Hopeful first-time homebuyers would be prudent to consider the competitive landscape, lifestyle, social and future growth potential of their home. Taking on such a large investment, particularly when the costs of homeownership may outpace the costs of renting in some places, requires planning ahead in terms of your career and family, as well as your budget. With this in mind, SmartAsset ranked 180 of the largest U.S. metro areas based on a variety of factors that may influence the buying process and long-term payoff for first-time homebuyers. These metrics include affordability relative to local median incomes, the level of housing inventory and demand for that inventory, projections of home-price growth, and the relative population of residents in their 20s and 30s. Key Findings McAllen, TX is the best metro area for first-time homebuyers in 2025. After ranking fourth last year, McAllen has replaced Lawton, OK as the number one metro area for hopeful homeowners. In particular, it offers positive projected home-price growth over the next year, moderate affordability with the median sale price of $204,499 being about four times as much as the median local income, and a market that allows potential buyers to take their time to make a decision before putting in an offer. Midwestern metros have the most affordable homes relative to local incomes. Peoria and Decatur, IL rank first and second in the affordability metric, with local home sale prices averaging about twice the amount of the median annual income. Davenport, IA; Springfield, IL; Lawton, OK; Cedar Rapids, IA; St. Joseph, MO; and Muncie, IN metros are also among the least expensive. However, only the Lawton, OK metro makes the top 10 best metros for first-time homebuyers when considering other metrics. Homes are on the market for less than a week in these metro areas. Bloomington, IL and Rockford, IL homes average just five days on the market before they go under contract, making it a competitive landscape for first-time homebuyers. The average days til pending is also just six days in the Ann Arbor, MI; Cincinnati, OH; and Springfield, IL metros. These Florida metro areas have some of the highest inventory. Cape Coral has more than double the amount of homes per sale per local resident as Port St. Lucie, which ranks second in this metric. Also among Floridian metros with the highest inventory are Jacksonville, Lakeland and Tampa. Top 20 Places for First-Time Homebuyers 1. McAllen, TX Median sale price: $204,499 Median household income: $56,655 Income to sale-price ratio: 27.70% Days to pending: 64 Inventory: 3,488 Inventory per capita: 0.003882151 One-year price change forecast: 40.0% Percent aged 25 to 39: 20.02% 2. Lawton, OK Median sale price: $150,007 Median household income: $59,843 Income to sale-price ratio: 39.89% Days to pending: 25 Inventory: 493 Inventory per capita: 0.003891481 One-year price change forecast: -110.0% Percent aged 25 to 39: 23.37% 3. Killeen, TX Median sale price: $253,104 Median household income: $74,976 Income to sale-price ratio: 29.62% Days to pending: 45 Inventory: 3,029 Inventory per capita: 0.00604188 One-year price change forecast: -100.0% Percent aged 25 to 39: 23.54% 4. Warner Robins, GA Median sale price: $232,822 Median household income: $79,903 Income to sale-price ratio: 34.32% Days to pending: 19 Inventory: 658 Inventory per capita: 0.003277235 One-year price change forecast: 80.0% Percent aged 25 to 39: 22.35% 5. Appleton, WI Median sale price: $296,011 Median household income: $88,651 Income to sale-price ratio: 29.95% Days to pending: 42 Inventory: 507 Inventory per capita: 0.002057354 One-year price change forecast: 130.0% Percent aged 25 to 39: 19.24% 6. Fayetteville, NC Median sale price: $255,157 Median household income: $64,636 Income to sale-price ratio: 25.33% Days to pending: 19 Inventory: 1,781 Inventory per capita: 0.004539476 One-year price change forecast: 150.0% Percent aged 25 to 39: 23.29% 7. Savannah, GA Median sale price: $353,187 Median household income: $79,392 Income to sale-price ratio: 22.48% Days to pending: 38 Inventory: 2,359 Inventory per capita: 0.005551437 One-year price change forecast: 60.0% Percent aged 25 to 39: 22.71% 8. Clarksville, TN Median sale price: $289,257 Median household income: $70,825 Income to sale-price ratio: 24.49% Days to pending: 26 Inventory: 1,475 Inventory per capita: 0.004378661 One-year price change forecast: 60.0% Percent aged 25 to 39: 24.14% 9. Cape Coral, FL Median sale price: $344,037 Median household income: $75,539 Income to sale-price ratio: 21.96% Days to pending: 59 Inventory: 20,066 Inventory per capita: 0.024043433 One-year price change forecast: -160.0% Percent aged 25 to 39: 16.35% 10. Muncie, IN Median sale price: $152,814 Median household income: $58,286 Income to sale-price ratio: 38.14% Days to pending: 12 Inventory: 293 Inventory per capita: 0.002608595 One-year price change forecast: 160.0% Percent aged 25 to 39: 18.41% 11. Peoria, IL Median sale price: $142,080 Median household income: $72,327 Income to sale-price ratio: 50.91% Days to pending: 11 Inventory: 928 Inventory per capita: 0.002563614 One-year price change forecast: -100.0% Percent aged 25 to 39: 17.89% 12. El Paso, TX Median sale price: $235,000 Median household income: $62,331 Income to sale-price ratio: 26.52% Days to pending: 30 Inventory: 3,196 Inventory per capita: 0.003664873 One-year price change forecast: 70.0% Percent aged 25 to 39: 22.11% 13. Eau Claire, WI Median sale price: $259,763 Median household income: $79,378 Income to sale-price ratio: 30.56% Days to pending: 43 Inventory: 453 Inventory per capita: 0.002590451 One-year price change forecast: 10.0% Percent aged 25 to 39: 19.75% 14. Yuma, AZ Median sale price: $306,083 Median household income: $66,397 Income to sale-price ratio: 21.69% Days to pending: 49 Inventory: 828 Inventory per capita: 0.003883295 One-year price change forecast: 180.0% Percent aged 25 to 39: 18.13% 15. Decatur, IL Median sale price: $124,945 Median household income: $61,550 Income to sale-price ratio: 49.26% Days to pending: 10 Inventory: 243 Inventory per capita: 0.002415723 One-year price change forecast: -150.0% Percent aged 25 to 39: 18.66% 16. Huntsville, AL Median sale price: $303,761 Median household income: $89,668 Income to sale-price ratio: 29.52% Days to pending: 29 Inventory: 2,254 Inventory per capita: 0.004274979 One-year price change forecast: -10.0% Percent aged 25 to 39: 20.83% 17. Youngstown, OH Median sale price: $151,734 Median household income: $54,215 Income to sale-price ratio: 35.73% Days to pending: 14 Inventory: 1,382 Inventory per capita: 0.003244368 One-year price change forecast: 100.0% Percent aged 25 to 39: 18.39% 18. Green Bay, WI Median sale price: $325,239 Median household income: $80,421 Income to sale-price ratio: 24.73% Days to pending: 40 Inventory: 791 Inventory per capita: 0.002383377 One-year price change forecast: 120.0% Percent aged 25 to 39: 18.79% 19. Jonesboro, AR Median sale price: $191,251 Median household income: $61,817 Income to sale-price ratio: 32.32% Days to pending: 38 Inventory: 738 Inventory per capita: 0.005410954 One-year price change forecast: -210.0% Percent aged 25 to 39: 20.78% 20. Syracuse, NY Median sale price: $231,720 Median household income: $77,356 Income to sale-price ratio: 33.38% Days to pending: 7 Inventory: 807 Inventory per capita: 0.001235918 One-year price change forecast: 200.0% Percent aged 25 to 39: 18.66% Data and Methodology This SmartAsset study examined 180 metro areas for which data was available. Metro areas are ranked based on four metrics, composed of: Affordability. Median sale price relative to median income. Median sale price comes from Zillow (Smooth, All Homes, Monthly) for 4/30/2025. Median income comes from the U.S. Census Bureau's 1 Year ACS. The data is from 2023, adjusted for wage growth of 5.58% through April 2025 per FRED. Growth potential. Zillow's Home Value Forecast; All Home Forecast, 1 Year; Homes (SFR, Condo/coop), smoothed. 4/30/2026 Competition. Median days to pending, Zillow. 4/30/2025 Inventory per capita Zillow: For-Sale Inventory, All Homes, Smoothed, Monthly U.S. Census Bureau 1 year ACS 2023 Social. Population aged 25-39: U.S. Census Bureau one year ACS 2023 This story was produced by SmartAsset and reviewed and distributed by Stacker. Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
JPMorgan Chase: Homebuyers Now Have To Spend 45% More of Their Incomes on Mortgages — Is Homeownership Still Worth It?
For hopeful homebuyers, the dream of owning property is often shattered by the stark reality that the housing market is nearly unaffordable. New data from JPMorgan Chase shows that homebuyers had to spend an additional 45% of their incomes on mortgage payments in 2024 compared with 2019. Read Next: Learn More: The fact is that potential homeowners face more obstacles than ever and will have to pay almost double each month. Given the economy, is buying a home still worth it? Home Prices and Mortgage Rates Are Rising According to JPMorgan Chase, home price indexes jumped 50% between 2019 and 2024. During this same time, 30-year fixed mortgage rates rose from 3.7% to 6.9%, meaning that monthly mortgage payments nearly doubled for most prospective buyers over the course of five years. Unfortunately, wages did not increase at the same breakneck pace. The financial services company reported that the median income increase for typical first-time homebuyers (people aged 25-44) was only 41% from 2019 to 2024. Therefore, people trying to buy homes today not only are going to face higher mortgage payments but also are doing it on wages that couldn't keep up with increasing costs. Check Out: Preference for Owning Despite these obstacles, many renters would like to still own. As reported by the Federal Reserve Bank of New York, 49% of renters said they would strongly prefer owning. However, only 34% said there was a probability of owning a primary residence in the future. This discrepancy is likely explained by the fact that people, when surveyed, believed mortgage rates and home prices would continue to rise. Hope on the Horizon The housing market is notoriously difficult to predict. The good news is that experts believe the mortgage rates may come down, albeit only slightly, in the near future. While it may not drop to the lows seen in 2019, some forecasts suggest it could drop somewhat by 2027, per U.S. News & World Report. A drop in mortgage rates would help hopeful homeowners. Even a 1-percentage-point change in the rate could save homeowners hundreds of dollars a month and thousands over the course of the loan. To Buy or Not To Buy The question, however, remains whether potential homebuyers should take the leap or wait it out. Housing experts believe that while waiting for a substantial drop in rates might seem like a good idea, it could prove to be costly. U.S. News reported that while rates may come down slightly, they are not expected to drop significantly, and home values are expected to rise. Additionally, if there is a drop in rates or home prices, it could send buyers swarming to the market, creating more competition. Prospective buyers who are financially steady and have a stable income could consider buying now. If rates come down in the future, homeowners can consider refinancing, which could end up saving hundreds of dollars each month. Shop Top Mortgage Rates Personalized rates in minutes Your Path to Homeownership A quicker path to financial freedom On the other hand, potential buyers with unstable finances or uncertain income may want to continue to hold off to ensure they don't end up overextended. Buying a home is really dependent on individual circumstances and should not be handled with a one-size-fits-all approach. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on JPMorgan Chase: Homebuyers Now Have To Spend 45% More of Their Incomes on Mortgages — Is Homeownership Still Worth It? Sign in to access your portfolio
Yahoo
18-07-2025
- Business
- Yahoo
3 Ways First-Time Home Buyers Could Benefit From the ‘Big, Beautiful' Bill
President Donald Trump signed the One Big Beautiful Bill Act into law on Jul. 4. The legislation will have sweeping ramifications for the country and the economy, with major implications for law enforcement, taxes, immigration and social welfare programs. Trending Now: Read Next: However, those looking to buy their inaugural house are likely to be more interested in a trio of provisions that could impact first-time homebuyers. Here's what's on the horizon for them. SALT Deduction Cap Temporarily Raised According to Fidelity, the bill raises the state and local tax (SALT) deduction to $40,000 for those earning less than $500,000 per year. It was capped at $10,000 in 2017 and will revert to a $10,000 maximum deduction in 2030, but for now, it quadruples the deductible amount of property and other taxes. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership AD Mortgage said this is especially helpful to buyers in high-tax states, such as New York, New Jersey, California, Connecticut and Illinois, and to borrowers taking out jumbo or conforming loans, high balance loans and non-qualified mortgages. Learn More: Tax-Exempt Savings Accounts Established Aspiring first-time homebuyers with families can hit the ground running with the so-called 'Trump accounts' the bill creates. According to the Tax Foundation, they're a new kind of tax-exempt savings account for children that parents, relatives and others can contribute to for a maximum of $5,000 per year to grow tax-free until the minor turns 18. Babies born in the next four years get a $1,000 government-funded contribution. The accounts are for qualified expenses only, including the first-time purchase of a principal residence. Mortgage Interest and PMI Deductions Made Permanent National Mortgage Professional said the legislation also permanently restores two key benefits for first-time buyers and many veteran homeowners alike. It permanently restores private mortgage insurance (PMI) as a deductible expense for buyers who put less than 20% down. According to U.S. Mortgage Insurers, first-time buyers account for 65% of PMI policies. Additionally, the bill makes permanent the deductibility of mortgage interest on home loans of up to $750,000, a cap that remains unchanged. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on 3 Ways First-Time Home Buyers Could Benefit From the 'Big, Beautiful' Bill Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
