NFHA Applauds Introduction of “Downpayment Toward Equity Act,” Citing New Report on Racial Homeownership Gaps

FOR IMMEDIATE RELEASE:

NFHA Applauds Introduction of “Downpayment Toward Equity Act,” Citing New Report on Racial Homeownership Gaps

WASHINGTON, D.C. – The National Fair Housing Alliance® (NFHA™) today applauded House Financial Services Committee Ranking Member Rep. Maxine Waters and her colleagues, Congressman Al Green, Congresswoman Ayanna Pressley, and Congresswoman Sylvia Garcia for introducing the Downpayment Toward Equity Act during National Homeownership Month. The bill would provide first-generation homebuyers with up to $25,000 for down-payment and closing costs—an intervention NFHA calls “essential” in a new report released this week, The State of Equitable Homeownership 2025.

“The National Fair Housing Alliance commends HFSC Ranking Member Maxine Waters for reintroducing the Downpayment Toward Equity (DTE) Act, which is based on a policy proposal developed by NFHA and the Center for Responsible Lending. Pervasive discrimination in housing and lending, including redlining, continues and stifles equal opportunities while undermining the health of the economy. The DTE Act is a fair and innovative approach to overcoming the most common barrier-a lack of a down payment- for people seeking the American dream of safe, stable homeownership. The DTE Act has the potential to create five million new homeowners among people who would be the first in their family to buy a home in urban, rural, and suburban communities in all 50 states, Washington DC, and Puerto Rico,” said NFHA’s Executive Vice President Nikitra Bailey. “Since 2019-2024, intentional policies grew homeownership for Black, Latino, Asian, and White consumers. The DTE Act is crucial to carrying the ball forward so more people in our country can achieve their American dreams of homeownership and the ability to create intergenerational wealth and economic stability.”

Just this week, NFHA released a critical report where the key findings underscore the urgency of passage of the Downpayment Toward Equity Act.

Highlights from The State of Homeownership Report include:

Stubborn and persistent gaps in homeownership: In 2024, the White homeownership rate was 60 percent higher than the Black homeownership rate, 52 percent higher than the Latino homeownership rate, and 19 percent higher than the Asian/Native/Hawaiian/Pacific Islander (ANHPI) rate.

Critical progress is at risk: From 2019 to 2024, the homeownership rate for Black households increased by 14.29 percent, and this was the first time Black homeownership grew since the Great Recession in 2008. The rate for ANHPI households increased by 8.67 percent. The rate for Latino households increased by 4.72 percent, and the rate for White households increased by 1.78 percent. These gains could be reversed without sustained down payment assistance and inclusive lending programs and practices.

Credit barriers persist: Black applicants denied most frequently at 27.11 percent, AIAN applicants denied at 26.24 percent, and Latinos denied at 22.07 percent in 2024. In comparison, White and Asian applicants had their mortgage applications denied at much lower rates of 16.54 percent and 14.34 percent, respectively.

“Passing the DTE Act would be a significant step toward addressing longstanding racial wealth and homeownership gaps while serving as a boost to the fragile housing market,” Ms. Bailey said. “And it would enable teachers, first responders, police officers, nurses, and others a chance to secure stable monthly housing payments during the nation’s fair and affordable housing crisis. The National Fair Housing Alliance strongly supports passing the DTE Act.”

Read the full report: The State of Equitable Homeownership.

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The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for 200 fair housing and justice-centered organizations throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.