Active First-Time Home Buyer Bills In 2023-2024 Congress

The government wants to help you buy your first home.

Millions of first-time home buyers already receive interest rate discounts off today’s mortgage rates through the FHFA Mortgage Rate Discount Program. There are also 6 other first-time home buyer bills with Congress to help Americans stop renting and start owning sooner.

Each bill must follow a path before becoming law.

1. Legislation is introduced as a bill
2. The bill is debated
3. The bill is brought to a vote
4. The bill passes the House and the Senate
5. The bill is signed into law by the President

This article tracks the active first-time home buyer programs in Congress and their progress into law.

First-Time Home Buyer Mortgage Programs [February 2023 Update]

1. FHFA First-Time Home Buyer Mortgage Rate Discount

• Status: Announced October 22, 2022
• Effective: Mortgages funding on or after December 1, 2022

The FHFA First-Time Home Buyer Mortgage Rate Discount is an automatic interest rate reduction for eligible first-time buyers. The rule is sponsored by Fannie Mae and Freddie Mac and lowers conventional mortgage rates up to 1.75 percentage points. 

Program eligibility standards include:

• Must be a first-time home buyer
• Must be purchasing a primary residence
• Must agree to move in within 60 days of the closing
• Must be a low- or middle-income wage earner relative to the area
• Must finance with a conventional mortgage

Eligible first-time home buyers receive the FHFA mortgage rate discount automatically. Share your income and credit information as part of your mortgage pre-approval to get your total discount size.

Check your mortgage eligibility.

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2. First-Time Homebuyer Act of 2024

• Status: Introduced to the House, awaiting a vote
• Originally Introduced: April 28, 2021
• Latest Action Taken: March 14, 2024 – Reintroduced as a bi-cameral bill

The First-Time Homebuyer Act of 2024, commonly called the $15,000 First-Time Home Buyer Tax Credit, gives first-time home buyers a tax credit that can be applied toward down payment and closing costs at settlement, or issued as a cash payment from the U.S. Treasury.

The program’s minimum eligibility standards include the following:

• Must be a first-time home buyer
• Must not exceed income and purchase price limitations
• Must be purchasing a primary residence – second homes and rental properties are not allowed
• Must be at least 18 years of age or married to a person who is 18 years of age
• Must be purchasing a home from a non-relative

The $15,000 First-Time Home Buyer Tax Credit was introduced in the last Congress, then renewed in Congress in March 2024. There is a corresponding bill in the House and Senate. Neither has been brought to a vote.

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3. Downpayment Toward Equity Act

• Status: Introduced to the House, awaiting a vote
• Originally Introduced: April 14, 2021
• Latest Action Taken: March 12, 2024, re-introduced in the Senate

The Downpayment Toward Equity Act, also known as the $25,000 First-Time Home Buyer Downpayment Grant, gives first-time buyers a cash grant of up to $25,000 toward purchasing a home. Grant cash can pay for any purchase-related line item, including down payment, interest rate reduction, mortgage, real estate closing costs, and other general expenses.

The program’s minimum eligibility standards include the following:

• Must be a first-time home buyer
• Must meet income and purchase price limitations
• Must be purchasing a primary residence – second homes and rental homes are not allowed
• Must use a government-backed mortgage such as a conventional loan, FHA loan, or USDA loan
• Must have parents or legal guardians who have not owned a home in your lifetime unless (1) they lost their home to foreclosure or short sale, or (2) you lived in foster care at any point in your lifetime

The $25,000 Downpayment Toward Equity Act is an active bill in the House and the Senate. It still needs to receive a vote. Cash grants are unavailable to buyers as of today.

Check your mortgage eligibility.

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4. The DASH Act

• Status: Introduced to the Senate, awaiting a vote
• Originally Introduced: August 18, 2021
• Latest Action Taken: March 7, 2023 – “Read twice” and Referred to the Committee on Finance

The Decent, Affordable, Safe Housing for All Act (DASH Act) resembles the First Time Homebuyer Act but with more straightforward qualification standards.

The DASH Act provides up to $15,000 in refundable tax credits to first-time home buyers who meet minimum eligibility standards:

• Must be a first-time home buyer
• Must meet purchase price limitations
• Must be at least 18 years of age or married to a person who is 18 years of age
• Must be a U.S. citizen
• Must have an adjusted gross income of $100,000, or $200,000 for married couples filing jointly

Check your mortgage eligibility.

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5. The $10,000 First-Time Home Buyer Mortgage Relief Credit

• Status: Proposed by the White House
• Originally Introduced: March 7, 2024
• Latest Action Taken: None

The $10,000 First-Time Home Buyer Mortgage Relief Credit is a mortgage relief program for low- and middle-income households. It gives eligible buyers $5,000 in tax credits for their first two years of homeownership or pays the tax credit in full at closing to use as downpayment assistance.

The program’s minimum eligibility standards include the following:

• Must be a first-time home buyer
• Must not exceed income and purchase price limitations
• Must be purchasing a primary residence
• Must be at least 18 years of age or married to a person who is 18 years of age
• Must be making an arms-length transaction

The Biden $10,000 mortgage relief tax credit is expected to help 3 million first-time home buyers.

Check your mortgage eligibility.

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6. Low-Income First Time Home Buyer Act (LIFT)

• Status: Introduced to the House
• Originally Introduced: September 22, 2021
• Latest Action Taken: June 22, 2023 –  Read twice and referred to the Committee on Environment and Public Works

The LIFT Act provides below-market mortgage rates to first-generation renters of modest means. The program reduces mortgage interest paid, so homes pay off in 20 years instead of thirty with the same monthly payment, which builds wealth faster.

Home buyers can combine the LIFT Act with other first-time buyer programs, including the $15,000 First-Time Home Buyer Tax Credit and the $25,000 Downpayment Toward Equity Act.

The program’s minimum eligibility standards include the following:

• Must be a first-time home buyer
• Must meet income and purchase price limitations for the area
• Must use an FHA-backed mortgage loan
• Must have parents or legal guardians who don’t currently own a home unless you lived in foster care at any point in your lifetime

Check your mortgage eligibility.

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Can’t Wait For Laws To Pass?

Don’t let Congress make you wait. The FHFA First-Time Home Buyer Mortgage Rate Discount is available and will save you money.

Plus, buyers can use low- and no-money-down mortgages to purchase homes and combine them with local first-time home buyer programs and grants.