First Home Affordability Act

The bill was introduced in the House of Representatives on January 20, 2026. It has been referred to the House Committee on Ways and Means, where it will be reviewed and potentially revised. For it to become law, it would need to pass in the House, then the Senate, and finally be signed by the President.

If you buy your first home, you could claim a tax credit of up to $25,000, generally spread over five years at 2% of the purchase price annually. If you work as a first responder, childcare worker, or teacher, you could receive the entire 10% of the purchase price as a credit in the year you buy your home. You would also have the option to transfer this credit directly to your mortgage lender in exchange for an equivalent cash payment or a reduced down payment at closing, making the benefit immediate. This credit is subject to income limitations and the home's purchase price relative to local median prices.

Supporters would likely highlight the challenges faced by first-time homebuyers due to rising housing costs and the importance of supporting essential community members like teachers and first responders in affording homes. Critics might express concerns that such a credit could further inflate housing prices by increasing demand, or question the overall fiscal impact on the federal budget.