First Home Affordability Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The First Home Affordability Act establishes a refundable tax credit for first-time homebuyers. This credit is equal to 10% of the purchase price of a principal residence, divided by 5, up to a maximum of $25,000. The credit is phased out based on the taxpayer’s modified adjusted gross income and the area median income where the home is located. Certain individuals, such as teachers and first responders, may be eligible for a higher credit amount. The bill also includes provisions for a credit period, recapture of the credit if the residence is sold before the end of the period, and allows mortgage lenders to receive the credit instead of the taxpayer.
Key provisions
- Establishes a 10% refundable tax credit for first-time homebuyers, capped at $25,000.
- The credit is phased out based on modified adjusted gross income and area median income.
- Provides a higher credit amount for teachers, childcare workers, and first responders.
- Defines ‘first-time homebuyer’ as someone who has not owned a residence in the past 3 years.
- Sets a 5-year credit period beginning with the year of purchase.
- Includes a recapture provision for the credit if the residence is sold before the end of the credit period.
- Allows taxpayers to elect for the credit to be transferred to the mortgage lender.
- Establishes a program for advance payments to mortgage lenders who make the election.
Who is affected
- First-time homebuyers
- Taxpayers
- Mortgage lenders
Bill text
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Sponsors
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1 on record
Primary sponsor
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