First-Time Homebuyer Tax Credit Act of 2025

Key Points

• Creates a refundable tax credit for first-time homebuyers worth 10% of a home’s purchase price, capped at $15,000 ($7,500 if married filing separately).
• Limits the credit for higher-income buyers using local “area median income,” and reduces it for homes priced well above typical local prices.
• Only applies if you buy your main home, you (and a spouse) haven’t owned a home in the last 3 years, and you’re at least 18.
• You generally must keep the home as your main home for up to 4 years, or you may have to pay back part of the credit (with exceptions like death, certain moves for work, or some government duty orders).
• Lets buyers choose to have the credit paid to their mortgage lender at closing, so the lender can give the buyer the same amount as cash or a down-payment help instead of waiting for tax time.