The "Downpayment Toward Equity Act of 2025" establishes a new program under the Secretary of Housing and Urban Development to provide grants to States and eligible entities. These grants are specifically designed to offer financial assistance to first-generation homebuyers for acquiring owner-occupied primary residences. The program's overarching goal is to address multigenerational inequities in access to homeownership and to narrow, and ultimately close, the racial homeownership gap in the United States. Funds are allocated with 75 percent distributed among States based on a formula considering potential qualified homebuyers and median home prices, while the remaining 25 percent is competitively awarded to eligible entities. The assistance covers various costs, including downpayment costs , closing costs, and expenses to reduce interest rates on eligible mortgage loans. It also supports subsidies for shared equity homes to maintain affordability and funds pre-occupancy home modifications for individuals with disabilities. To qualify, homebuyers must meet specific criteria, including a household income not exceeding 120 percent (or 140 percent in high-cost areas) of the area median income. They must also be a first-time homebuyer and a first-generation homebuyer , meaning their parents or legal guardians did not own a home, or they have a history of foster or institutional care. Eligibility for first-generation status relies on borrower self-attestation, and creditors are protected from liability for good faith reliance on these attestations. The maximum assistance amount is the greater of $20,000 or 10 percent of the purchase price, with potential increases for socially and economically disadvantaged individuals or those acquiring homes in high-cost areas. States administering the program must ensure compliance with fair housing requirements and are prohibited from prioritizing homebuyers based on state-assisted mortgages or seeking to recoup funds, except under specific conditions. The Secretary can recapture and reallocate funds if a grantee fails to expend them timely or distributes them inequitably, particularly concerning racial or ethnic groups. All qualified homebuyers are required to complete housing counseling before entering a sales agreement, with alternative education options available if counseling capacity is limited. The bill mandates comprehensive reporting on demographic information, assistance types, and property details, disaggregated by ZIP Code or census tract, to ensure equitable outcomes and affirmatively further fair housing. A substantial appropriation of $100,000,000,000 is authorized for the grants, with funds remaining available until expended.