How Trump’s Big, Beautiful Bill Could Make Homebuying More Affordable

The housing market, whether in New Jersey, California or Texas, hasn’t been easy. High mortgage rates, limited desirable inventory, and inflation-weary buyers have made 2025 one of the most difficult years in recent memory to buy a home.

But the newly signed Big, Beautiful Bill may offer a rare glimmer of hope for first-time homebuyers—especially for Texans.

The Bill, signed into law on July 4, 2025, tackles tax reform, energy policy, and economic growth measures. But tucked inside its 1,000+ pages are meaningful wins for current and aspiring homeowners: tax breaks that increase take-home pay - making it easier to afford a home, incentives for cities to approve more housing, and structural policies aimed at stabilizing inflation over time.

If you're looking to buy or already own a home, here’s how the bill could put money back in your pocket—or help you finally cross the threshold into ownership.

More Tax Savings for Homeowners

One of the most tangible wins for homeowners (and something that hombuyers can look forward to) is the expansion of the State and Local Tax (SALT) deduction. Under prior law, homeowners could only deduct up to $10,000 in state and local taxes, including property taxes, but under the Big, Beautiful Bill, that cap has now been raised to $40,000 for households earning under $500,000, and it’s locked in through 2029.

That’s especially helpful in high-tax counties like Travis, Harris, and Collin—where property taxes can easily exceed the old cap. It means that homeownership has become more affordable for millions of Americans, which helps the rent vs buy equation that many homebuyers do.

For example, a couple in Travis County with a $705,000 home and $14,000 in annual property taxes used to be capped at a $10,000 SALT deduction. Under the new $40,000 cap, they can now deduct the full amount, potentially saving them over $1,000 on their federal return each year.

The bill also locks in lower income tax brackets from the 2017 Tax Cuts and Jobs Act. That means more take-home pay, which directly helps families save up faster for their down payment—or simply makes budgeting a bit easier each month.

It also makes tips received by employees entirely tax-free on up to $25,000 of tip income—a major change for service industry workers across Texas. For homebuyers who rely on tipped income, this means their take-home pay increases without triggering a higher tax burden, potentially helping them save faster for a down payment or qualify for a larger loan.

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No New Homebuyer Credit, But Indirect Support Still Matters

Despite early rumors, the Big, Beautiful Bill does not include a new refundable homebuyer tax credit or down payment assistance. That idea originated from Biden-era proposals and never made it into the final bill.

However, that doesn’t mean buyers are left out. The combination of tax relief and supply-side housing incentives can still make homeownership more accessible—especially in places like Texas, where affordability is tied closely to inventory and income.

Encouraging Cities to Permit Cheaper New Housing Supply

The Big, Beautiful Bill doesn't just focus on tax breaks—it puts real money on the table for cities and counties that make it easier to build housing. It creates a competitive federal grant program where states and local governments can receive funding if they implement zoning reforms that reduce barriers to residential construction.

That includes changes like:

• Reducing minimum lot sizes

• Allowing duplexes and townhomes in more neighborhoods

• Streamlining permitting and rezoning timelines

It’s a carrot, not a stick—cities don’t have to comply, but those that do will be rewarded with federal dollars to invest in infrastructure, planning, and housing development.

In fast-growing urban parts of Texas like Austin, Houston, and San Antonio—where population growth and housing demand are putting strain on supply—this could translate to faster movement on new subdivisions, infill developments, and more affordable multi-family housing. It’s a direct incentive to break through the red tape that often blocks entry-level construction. It's going to be especially transformative in the Northeast where areas of New Jersey, Connecticut and New York have been plagued by low inventory due to an inability to build affordably because of existing regulation.

But even in Texas, imagine a city like Leander, that's developing and getting expensive quickly, using grant money to overhaul its zoning code and approve 1,000 new starter homes near a new school and transit hub. That would not only improve affordability—it would bring more families into the market with a shot at building wealth through homeownership.

While much of the bill’s focus is on affordability and increasing housing stock for FHA and conventional buyers, veterans can benefit too. As housing supply expands and local markets open up, VA homebuyers—who already enjoy no-down-payment options, even on jumbo loans—could see more opportunities with less competition. 

Home prices aren't high because of mortgage rates. They're high because there hasn't been enough supply to meet demand. Trump's plan is to hopefully create more supply in certain low inventory segments of the country. 

Economic Growth May Help Mortgage Rates

Another indirect win? The bill is packed with corporate tax cuts, energy incentives, and deregulation—all designed to stimulate long-term economic growth. The idea is that by lowering business taxes and streamlining regulations, companies will invest more, hire more, and produce more domestically. For example, the bill:

• Lowers the corporate tax rate to 15% across the board

• Expands accelerated depreciation for business investment in manufacturing and energy infrastructure

• Eases permitting for domestic energy projects, including natural gas and renewables

The theory behind these changes is that stronger supply chains and cheaper energy could lower long-term costs and curb inflationary pressures. If that happens, the Federal Reserve would have more flexibility to reduce interest rates in 2026 and beyond—great news for mortgage shoppers.

However, not everyone agrees this will happen. Many economists believe these tax cuts, especially without offsetting revenue increases, could actually fuel higher deficits and put upward pressure on inflation in the short term. And higher inflation typically means higher mortgage rates.

So, what does that mean for today’s buyers? If you purchase now and inflation does rise, it could push home values even higher—which benefits early buyers. If inflation cools and rates drop, you can always refinance. In both cases, owning now puts you on the right side of rising prices.

Caution for Lower-Income Households

Not every provision in the bill benefits homebuyers equally. The Big, Beautiful Bill includes deep cuts to safety net programs like SNAP and Medicaid, which could increase housing insecurity for low-income renters and households living paycheck to paycheck.

Why does this matter for homebuyers? Because many first-time buyers rely on those same programs while trying to build enough savings to qualify for a loan. Reduced support means tighter household budgets—and potentially delays in reaching key savings milestones like a down payment, emergency reserves, or minimum credit scores.

In Texas, where wages haven’t always kept up with housing costs, the tradeoff may push some would-be buyers further to the sidelines. Renters who were already stretching to make ends meet could find it even harder to escape the rent cycle.

Still, for moderate- and middle-income earners, the combination of tax savings, housing flexibility, and pro-growth economic policy could open doors that were previously out of reach.

Final Thoughts: What This Means for Buyers

The Big Beautiful Bill may not hand out checks at closing—but it rewards homeowners and aspiring buyers in quieter, structural ways:

• More take-home pay through lower tax brackets

• Bigger deductions for property taxes

• Encouragement for cities to build faster and more affordably

It’s not flashy, but it’s meaningful. Especially in Texas, where real estate continues to be one of the most reliable paths to long-term wealth.

If you’ve been on the fence, this may be the moment to revisit your budget, talk to a mortgage broker, and run the numbers again. You might be closer to owning a home than you think.

Ready to take the next step? LendFriend is here to help. Give us a call at 512.881.5099 or get in touch with me by completing this quick form, and I'll reach out as soon as possible.