Politics & Money

NAR lends support to First Time Homebuyer Pandemic Savings Act

Would let borrowers withdraw retirement funds without penalty

The National Association of Realtors announced their support of Rep. Sean Maloney’s (D-NY) First Time Homebuyer Pandemic Savings Act in a release on Wednesday.

The NAR called for members of the U.S. House of Representatives to cosponsor the bill that would allow for first-time homebuyers to withdraw funds from their retirement accounts under the umbrella of coronavirus-related distributions to assist with the purchase of a home. 

“While various barriers have stood in the way of homeownership for younger generations, COVID-19 has pushed the American dream further out of reach for countless families and individuals by no fault of their own,” said NAR President Vince Malta.

Rep. Maloney’s bill would allow for up to $25,000 of coronavirus-related retirement distributions to be tax exempt and penalty free if put toward the down payment of a first home. With the act potentially sitting under the umbrella of coronavirus-related distribution, the bill would not be subject to the early-distribution penalty of 10% and could be repaid over three years. 

The bill would also extend the coronavirus-related distribution sunset clause to December 31, 2021.

“Making sure the next generation of homeowners have the resources they need to buy their first home is going to play a big role in our economic recovery. This bill is a smart, innovative way to bring new opportunity to new homebuyers and help young families get one step closer to realizing the American dream,” said Maloney.

According to NAR, the legislation could potentially assist younger Americans struggling to save for their first down payment by combating the difficult climate created from the combination of climbing home prices and tightened inventory.

“With homeownership remaining one of the best and most sustainable ways for Americans to build wealth, the nation’s 1.4 million Realtors applaud Rep. Maloney for his leadership,” Malta said.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please