Salem, Oregon – For many first-time buyers, the biggest obstacle appears long before a mortgage application: finding enough money for the downpayment. That hurdle is taking longer to clear, with the typical first-time homebuyer reaching age 40 in 2025 and first-time buyers accounting for just 21% of purchases.
Oregon U.S. Sen. Jeff Merkley wants to change that equation with a proposal built around a strikingly simple formula, save $1 and potentially receive $5 from the federal government toward a first home. The Oregon Democrat introduced the Homeownership Promise Act on Sept. 23, with fellow Oregon Sen. Ron Wyden cosponsoring the legislation.
Under the proposal, the U.S. Department of Housing and Urban Development would establish Homeownership Promise Accounts for eligible first-time buyers. The accounts would provide matching downpayment grants that could be used when purchasing a qualifying principal residence.
The bill sets an overall account limit of $60,000. Up to $10,000 could come from personal savings along with employer or nonprofit contributions, while federal matching funds could total as much as $50,000. For every $1 personally contributed by an eligible family, HUD would provide a $5 match, up to that federal limit.
That means someone who eventually makes the full $10,000 in qualifying personal contributions could receive as much as $50,000 in federal matching funds. Employers and nonprofits could also contribute toward the account, although the combined non-federal portion would remain subject to the $10,000 ceiling.
The legislation defines eligible participants as first-time buyers who have never owned a principal residence and who complete HUD-approved housing counseling. The home would also have to serve as the buyer’s principal residence and fall within limits tied to the median single-family purchase price for the area.
“Working families should be able to afford a decent home in a decent community,” Merkley said while announcing the proposal. He argued that delayed homeownership is preventing many younger Americans from building the equity that previous generations used as a foundation for household wealth.
“My new Homeownership Promise Act would restore the promise of homeownership—one of the foundations that working families need to thrive,” Merkley said.
Housing has been a recurring focus of Merkley’s public career. Before entering the Senate, he led Portland Habitat for Humanity. His Senate office also points to his work on mortgage protections incorporated into the 2010 Dodd-Frank Act.
More recently, Merkley supported restrictions on large institutional investors purchasing single-family homes. The broader 21st Century ROAD to Housing Act became law in July 2026 and included limits on certain institutional purchases of single-family properties.
The Homeownership Promise Act takes a different approach, targeting the savings stage before a buyer reaches the closing table. Rather than changing mortgage terms, it would use federal matching funds to accelerate downpayment savings for qualifying first-time buyers.
The full text of the Homeownership Promise Act and a one-page summary of the proposal are available through Merkley’s Senate office.
