You may have heard about the One Big Beautiful Bill Act, also known as “The Big Beautiful Bill,” that was recently signed into law. If you’re hoping to become a homeowner soon, here’s how the new law may affect you.
First the good news. The new law may save you money in taxes once you buy your home.
- Homeowners have been able to deduct the amount they spend on mortgage interest up to a certain limit. The Big Beautiful Bill makes that deduction permanent.
- Homebuyers who make a downpayment of less than 20% typically have to buy private mortgage insurance (PMI). The new law allows you to now deduct what you pay in PMI premiums when you file your taxes.
- Homeowners get a tax deduction for paying state and local property taxes. The law allows homeowners to potentially deduct more now than they could deduct in the past.
All these provisions could help you keep more money in your pocket, giving you even more reason to pursue your homebuying goals.
But we’re going to be honest with you. There is also some not-so-good news for homebuyers as it pertains to the new law. The Big Beautiful Bill does not include funding for downpayment assistance programs.
While that could make the homebuying process more challenging, it doesn’t have to stop you from achieving your goals. And it’s even more important for you to seek out financial education and get the help of a trusted partner like HomeFree-USA.
How homeownership counseling can help
- Nonprofit homeownership organizations can help you find lenders’ programs as well as state and local resources that offer downpayment assistance. There is still free money out there that you can tap.
- Homeownership organizations have longstanding relationships with lenders who are looking for qualified borrowers to lend to.
- Nonprofit homeownership organizations have experts to guide you along the way. HomeFree-USA’s Homeownership Advisors, for example, can help you understand the homebuying process, improve your credit score, and become mortgage ready.
Whatever you think about the Big Beautiful Bill, it doesn’t have to stop you from reaping the rewards of homeownership. And once you become a homeowner, it may give you new rewards to reap. Schedule a Consultation to get started
