First Home Affordability Act

Sponsor: Raja Krishnamoorthi (Democratic-IL)January 20, 2026

AI-generated ?

Report an error

Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Creates a refundable tax credit to help first-time homebuyers afford a home.

This bill would create a new refundable tax credit for first-time homebuyers, offering up to $25,000 over five years. It aims to make homeownership more affordable by letting eligible individuals get 10% of their home's purchase price back. Teachers, childcare workers, and first responders could get the full credit upfront.

What Would Change

Today, there is no federal refundable tax credit specifically for first-time homebuyers. If this bill becomes law, eligible first-time homebuyers would be able to claim a tax credit of up to $25,000 over five years, or immediately if they are in certain professions, to help make homeownership more affordable.

Key Provisions

Creates a refundable tax credit for first-time homebuyers equal to 10% of the home's purchase price.
Caps the total credit at $25,000 per home purchase.
Allows teachers, childcare workers, and first responders to receive the full credit amount in the year of purchase.
Reduces the credit for homebuyers with higher incomes or for homes purchased above local median prices.
Lets homebuyers transfer the credit to their mortgage lender in exchange for an upfront payment.
Requires homebuyers to repay a portion of the credit if they sell the home or it stops being their main residence within five years, with some exceptions.

View on Congress.gov

HR 7160 · 119th Congress · January 20, 2026 · AI Summary by gemini-2.5-flash · 10/10

First Home Affordability Act

What Would Change

Key Provisions

Lobbying Activity