Overview: LIFT Homebuyers Act of 2025
| Bill Number | Chamber | Sponsor | Date Introduced |
|---|---|---|---|
| S.2719 | Senate | Sen. Mark Warner (D-VA) | September 4, 2025 |
The LIFT Homebuyers Act of 2025 is a bill that creates affordable, wealth-building mortgages for first-time, first-generation home buyers with low and moderate incomes.
The bill was introduced in the current Congress (119th), on September 4, 2025, in the Senate. The bill's sponsor is Sen. Mark Warner (D-VA).
Earlier versions of the bill were introduced in the 117th Congress (2021-2022) and 118th Congress (2023-2024). Neither passed into law, which is common; only 4% of bills become law, according to FactCheck.org.
The LIFT Homebuyers Act of 2025 is different from its prior iterations. This article is a full review.
Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates about this and other first-time home buyer programs, subscribe to our newsletter.
Bill Overview
LIFT Homebuyers Act of 2025
A bill to create federally backed 20-year mortgages with capped fees for eligible first-time, first-generation buyers.
Bill Overview
LIFT Homebuyers Act of 2025
A bill to create federally backed 20-year mortgages with capped fees for eligible first-time, first-generation buyers.
Official Title as Introduced
A bill to establish a program to provide low- and moderate-income first-time, first-generation homebuyers with access to affordable and sustainable wealth-building home loans.
Senate
What is the LIFT Homebuyers Act of 2025?
The LIFT Homebuyers Act of 2025 is a federal program that creates a no-downpayment, wealth-building mortgage for first-time, first-generation home buyers. The program is available to low and moderate income households.
The program centers on a government-backed 20-year mortgage with no annual mortgage insurance and a dramatically reduced interest rate. The result is a 20-year amortization schedule on a mortgage that pays like a 30-year loan.
Eligible buyers build home equity twice as fast. Here are rules for eligibility:
1. Must be a first-time home buyer
Home buyers must be purchasing their first home ever or have not owned a home in the last 36 months.
If two or more people are co-applicants on the mortgage, each applicant must meet the first-time home buyer definition. In addition, if a home buyer lives with a spouse or domestic partner, and that spouse or partner owned their primary residence in the last three years, neither buyer qualifies as a first-time buyer.
The LIFT Act makes an exception for heir property, which is property inherited without clean title. Heir property does not count as prior homeownership.
Reference: First-Time Home Buyer Scenarios
| Scenario | First-Time Home Buyer? |
|---|---|
| Has never owned a home | Yes |
| Owned a home within the last 36 months | No |
| Displaced homemaker (recently divorced, no ownership since) | Yes |
| Inherited a home but never lived in it | Yes |
| Spouse owned a home in the last 36 months, applicant did not | Yes |
| Lost a home to foreclosure 2 years ago | No |
| Owned a primary residence more than 3 years ago, now rents | Yes |
2. Must be a first-generation home buyer
To be eligible, a home buyer's parents or legal guardians may not have owned a home during the 36 months prior to purchase. For buyers whose parents or guardians are deceased, the bill requires that parents and guardians did not own a home at their time of passing. The rule applies for all applicants on the mortgage.
The parental / guardian requirements are waived for buyers who previously lived in foster care.
3. Must purchase a 1-unit home
The LIFT Act is for single-unit homes only. Eligible home types include:
- Single-family detached homes
- Single-family attached homes
- Townhomes
- Condominiums
Manufactured homes and mobile homes may be eligible if the home is on a permanent foundation, is taxed as real estate, and is built after June 15, 1976. Co-ops and multi-unit homes are not eligible.
4. Must earn a low- or moderate income for your area
The LIFT Act is limited to households with modest incomes compared to their local area. The program uses HUD’s measure of area median income (AMI), which is different in every city and adjusts for household size. The upper-limit for a family in Fort Lauderdale, Florida will look different from the cutoff in Morgantown, West Virginia.
- In standard cost of living areas, income must be at or below 120% of AMI to qualify
- In high-cost areas, income must be at or below 140% of AMI to qualify
Use our Income Limits calculator to see if you earn too much to qualify based on where you live.
Eligibility Based on Income
| Area Type | Maximum Income Limit | Example if AMI = $80,000 |
|---|---|---|
| Standard Area | 120% of AMI | $96,000 or less |
| High-Cost Area | 140% of AMI | $112,000 or less |
5. Must self-certify your eligibility
LIFT Act buyers must certify that they meet the program eligibility requirements, including parental and legal guardian homeownership status, which lenders will accept in good faith. Buyers who misrepresent their eligibility may face penalties, including possible loss of program benefits or legal consequences.
6. Must be mortgage-eligible
The LIFT Act mortgage is backed by Ginnie Mae, which handled FHA and USDA financing. Eligible first-time buyers must satisfy those programs' respective mortgage guidelines, including meeting minimum credit score requirements, showing a capacity to repay a loan, and having lawful U.S. residency. Lenders may impose additional overlays beond basic requirements.
Compare: Mortgage balance reduction with a 20-year vs 30-year term
| After Year | 20-Year Loan - Balance Remaining | 30-Year Loan - Balance Remaining |
|---|---|---|
| 1 | 94% | 98% |
| 5 | 72% | 91% |
| 10 | 44% | 81% |
| 15 | 15% | 68% |
| 20 | Paid off | 43% |
How Does the LIFT Act Work?
The LIFT Act creates a new mortgage program for first-time, first-generation buyers, backed by Ginnie Mae. The program creates a partnership between HUD, the Department of Agriculture, and the U.S. Treasury to lower the cost of homeownership and help families build equity faster.
HUD, the USDA and the U.S. Treasury work together
Three federal agencies work together to bring the LIFT Act to eligible buyers:
- HUD and USDA set program rules, pricing, and eligibility.
- Treasury buys securities backed by LIFT Act loans to support liquidity and keep rates affordable.
- Ginnie Mae guarantees securities based on these mortgages to maintain stability in mortgage-backed bonds.
The three-agency partnership keeps the program running smoothly and makes it easier for first-time, first-generation buyers to get a home loan.
Program funding and mortgage insurance
The LIFT Act program is supported by congressional appropriations, together with fees collected through FHA and USDA insurance funds. At closing, borrowers pay an upfront mortgage insurance premium or guarantee fee of no more than four percent of the loan balance, which can be added to the balance of the loan.
Unlike standard FHA loans, there is no annual mortgage insurance premium under the LIFT program. This structure makes monthly payments more predictable while still ensuring that the program remains funded.
20-year mortgages with payment lmits
LIFT Act mortgages are 20-year fixed-rate mortgages with mortgage rates lowered so that their principal + intereat payments fall within 10% of a comparable 30-year loan's principal + interest, plus mortgage insurance.
Buyers get a shorter loan term without a dramatic increase in their monthly payments. The design lets households to pay off their homes in 20 years instead of 30, building equity faster and reducing long-term interest costs.
20-Year LIFT Act Payment vs. 30-Year FHA Payment
| 30-Year P+I with 0.55% MIP | 30-Year Rate | Equivalent 20-Year Rate |
|---|---|---|
| $2,170 | 7.00% | 4.80% |
| $2,067 | 6.50% | 4.25% |
| $1,967 | 6.00% | 3.70% |
| $1,870 | 5.50% | 3.15% |
| $1,776 | 5.00% | 2.60% |
Who Sponsors the LIFT Homebuyers Act in Congress?
The LIFT Homebuyers Act of 2025 was introduced in the Senate on September 4, 2025.
This is the third time the LIFT Act has been introduced in Congress:
- In the 117th Congress (2021–2022), the first version of the bill was filed but did not advance.
- In the 118th Congress (2023–2024), the bill was reintroduced with expanded eligibility rules and gained additional cosponsors.
- In the 119th Congress (2025–2026), the current version focuses on creating a permanent, scalable mortgage program through HUD, USDA, and Treasury.
For the latest legislative updates and a full list of cosponsors, see the Bill Tracker above.
Frequently Asked Questions About the LIFT Homebuyers Act
Get answers to common questions about the proposed LIFT Homebuyers Act, including eligibility requirements and how the wealth-building mortgage program works.
What is the LIFT Homebuyers Act of 2025?
The LIFT Homebuyers Act creates a new federal program to provide affordable, wealth-building mortgages for first-time, first-generation buyers with low and moderate incomes. It aims to reduce barriers to homeownership and help close racial and generational wealth gaps.
Who qualifies as a first-time, first-generation homebuyer under the LIFT Act?
A buyer who has not owned a home in the past three years and whose parents or legal guardians have not owned a home recently. Exceptions apply for buyers who grew up in foster care or whose parents only held heir property.
What kind of mortgage does the LIFT Act provide?
The LIFT Act offers a 20-year fixed-rate mortgage with no down payment required, lower monthly payments than comparable 30-year loans, and capped fees. The goal is to help households build equity faster and reduce long-term costs.
How does the LIFT Act differ from FHA or USDA loans?
Unlike standard FHA or USDA loans, LIFT mortgages have a shorter 20-year term, capped mortgage insurance or guarantee fees, and are designed to be more affordable and wealth-building for eligible buyers.
Is there an income limit for the LIFT Act?
Yes. The program is limited to low- and moderate-income households, typically defined as those earning up to 120% of area median income (AMI). The exact limits will be set by HUD and USDA in implementation.
Can LIFT mortgages be used for any type of home?
No. The home must be an owner-occupied primary residence. Vacation homes, second homes, and investment properties are not eligible.
When will the LIFT Homebuyers Act take effect?
The Act is currently introduced and must pass through Congress before becoming law. If enacted, HUD, USDA, and Treasury will issue regulations before mortgages can be offered.
Does the LIFT Act replace the Downpayment Toward Equity Act or the HELPER Act?
No. The LIFT Act is a separate proposal. While the Downpayment Toward Equity Act offers cash grants and the HELPER Act modifies FHA loans, the LIFT Act creates a new federal mortgage option for eligible buyers.
