H.R. 2064 — Home of Your Own Act of 2025

This section establishes a homeownership assistance grant program to be administered by the Secretary of Housing and Urban Development (HUD), requiring implementation not later than one year after enactment, under which grants are provided to states and Indian tribes to assist eligible persons in acquiring ownership interests in eligible homes. The Secretary reserves 3% of appropriated amounts for Indian tribes using the formula under section 302 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4152) and equitably allocates remaining amounts to participating states per a formula established by rule. Grant recipients must use funds solely for eligible persons' downpayment and closing costs, interest rate reductions on eligible mortgage loans, or pre-occupancy repairs and accessibility modifications, with assistance capped at $30,000 per person and provided only once; such assistance may be layered with other federal, state, tribal, or nonprofit sources. If an assisted person fails to occupy the home as primary residence for 60 months (beginning at lawful occupancy), proportional repayment is required unless due to hardship or an arm's-length sale for less than acquisition cost (including closing costs); states or tribes may impose liens for recapture, with recaptured funds used for other eligible persons. Assistance is excluded from gross income under the Internal Revenue Code of 1986 and, by rule of construction, is not a prohibited source of funds under FHA single-family mortgage insurance eligibility restrictions (12 U.S.C. 1709(b)(9)(C)). (Thus, eligible persons may use these grants toward FHA-insured mortgages without violating downpayment source prohibitions.)

This section requires states and Indian tribes receiving grants under the Act to submit annual plans to the Secretary describing implementation and compliance with the Act, which states may include in their Annual Action Plan and tribes in their Indian Housing Plan. It further requires states to distribute at least 25% of allocated grant amounts through community development financial institutions (CDFIs); directs tribes to consider such distributions; and authorizes the Secretary to permit both states and tribes to outsource grant distributions to approved tax-exempt nonprofits or CDFIs (and, for tribes, tribally designated housing entities, intertribal consortia). For tribes, it permits grant preferences for members of the recipient tribe or other tribes.

This section requires a State or Indian tribe to ensure that an eligible person completes a financial counseling program on homeownership responsibilities and financial management before receiving assistance under the Act. The program must be conducted by an entity providing financial counseling approved by, and in a manner acceptable to, the Secretary or the State or Indian tribe providing the assistance.

This section authorizes appropriations of $6.7 billion for each of FY2026 through FY2030 to carry out the Act. It limits administrative costs to no more than 7% of amounts provided to states and 10% of amounts provided to Indian tribes and allows the Secretary to use no more than 3% of appropriated amounts for training and technical assistance to states and Indian tribes.

This section defines terms for purposes of the Act, including (1) community development financial institution, as defined in the Community Development Banking and Financial Institutions Act of 1994; (2) eligible home, meaning a 1-to-4 dwelling unit residential property (including condominiums, cooperatives, manufactured housing, and accessory dwelling units) that is subject to a mortgage meeting specified underwriting standards (i.e., conforming to Fannie Mae/Freddie Mac limits; FHA, USDA Rural Housing, qualified mortgage under TILA, VA, or tribal land requirements, as applicable) and occupied as a primary residence by an eligible person; (3) eligible person, meaning a self-attested first-time homebuyer in a household with income not exceeding 120% of area median income (or 150% in high cost-of-living areas; greater of U.S. or area median on Indian tribe land); and (4) first-time homebuyer, as defined in the Cranston-Gonzalez National Affordable Housing Act. The section further defines Indian tribe (per NAHASDA), ownership interest (e.g., fee simple, certain leaseholds), Secretary (of Housing and Urban Development), and State (including territories).