First Home Affordability Act

This bill would create a refundable federal tax credit for first-time homebuyers who buy a main home with a federally backed mortgage. The credit would equal 10 percent of the purchase price, paid in equal parts over 5 tax years, with a total cap of $25,000 ($12,500 for married people filing separately). The credit would shrink for buyers whose income is above 150 percent of the local median income or whose home costs more than 110 percent of the local median home price. Teachers, childcare workers, and first responders could receive the full credit in the year they buy. Buyers could choose to transfer the credit to their mortgage lender in exchange for a payment at closing, and part of the credit would have to be paid back if the home is sold or stops being the main residence during the credit period, with some exceptions.

Full text and official record on Congress.gov

Sponsors

• Raja Krishnamoorthi Democrat sponsor
• 0 cosponsors