The First-Time Homebuyer Tax Credit Act of 2025 creates a new federal tax credit to help first-time homebuyers purchase a principal residence in the United States. Under the bill, eligible homebuyers can claim a refundable tax credit equal to 10 percent of their home's purchase price, capped at $15,000 per individual (or $7,500 for married couples filing separately). The credit begins phasing out for buyers whose income exceeds 150 percent of their area's median income and for homes priced above 110 percent of the local median home price, and it applies only to homes financed with federally-backed mortgages. The bill takes effect for homes purchased after enactment and includes a recapture provision requiring homebuyers to repay 25 percent of the credit annually if they sell the home within four years, except in cases of death, job relocation, military duty, or involuntary conversion. Mortgage lenders may also register to receive the credit directly by passing discounts to homebuyers, with the Treasury advancing funds to participating lenders.
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