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

The government aims 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 six other first-time home buyer bills currently in Congress aimed at helping Americans stop renting and become homeowners sooner.

Each bill must follow a process 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.

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 program is sponsored by Fannie Mae and Freddie Mac and can lower conventional mortgage rates by 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 automatically receive the FHFA mortgage rate discount. Share your income and credit information during mortgage pre-approval to determine your discount size.

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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, often referred to as the $15,000 First-Time Home Buyer Tax Credit, provides first-time buyers with a tax credit for down payments or closing costs, or it can be issued as a cash payment by the U.S. Treasury at settlement.

Program eligibility standards include:

• 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 ineligible
• Must be at least 18 years of age or married to a person who is 18 years old
• Must purchase a home from a non-relative

The $15,000 First-Time Home Buyer Tax Credit was initially introduced in the previous Congress and renewed in March 2024. The bill is active in both the House and Senate but has not yet been voted on.

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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, reintroduced in the Senate

The $25,000 First-Time Home Buyer Downpayment Grant, also known as the Downpayment Toward Equity Act, provides first-time buyers up to $25,000 in cash grants. The funds can be used for down payments, interest rate reductions, closing costs, and other related expenses.

Program eligibility standards include:

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

The $25,000 Downpayment Toward Equity Act is currently active in both the House and Senate but has not yet been voted on. As of today, cash grants are not available.

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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) provides up to $15,000 in refundable tax credits to eligible first-time home buyers.

Program eligibility standards include:

• 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

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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 offers low- and middle-income households a $5,000 tax credit for the first two years of homeownership. The tax credit can also be applied in full at closing for down payment assistance.

Program eligibility standards include:

• 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 $10,000 First-Time Home Buyer Mortgage Relief Credit is expected to help 3 million first-time home buyers.

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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 offers below-market mortgage rates to first-generation renters with modest incomes. This program reduces the mortgage term to 20 years, helping buyers build equity faster while keeping the same monthly payments.

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.

Program eligibility standards include:

• 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

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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 now and can save you money.

Additionally, you can use low- and no-money-down mortgages and combine them with local first-time home buyer programs and grants.