Bill · H.R. 7160· House(119-HR-7160)
First Home Affordability Act
- Introduced
- 1/20/2026
- Last activity
- 1/20/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Raja Krishnamoorthi
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The First Home Affordability Act aims to amend the Internal Revenue Code to create a refundable tax credit for first-time homebuyers. An eligible individual can receive a credit based on a percentage of their principal residence's purchase price. The bill establishes specific rules for income limits, purchase price limits, and age requirements. It also provides special rules for specific occupations like teachers, childcare workers, and first responders. Additionally, the act allows for the transfer of the credit directly to mortgage lenders. These changes would apply to principal residences purchased after the act is enacted.
Yes· 3 of 11
Would middle-income households be better off under this?+6
The credit offers substantial assistance to middle-income earners purchasing their first homes.
Does this make housing cost less?+6
The act provides direct financial assistance to help first-time buyers overcome the barrier of home ownership costs.
Would people in their twenties and thirties be better off under this?+5
The credit specifically targets first-time homebuyers, a group that frequently consists of younger adults entering the housing market.
The opposite· 3 of 6
Would high-income households be better off under this?-2
The credit is phased out for those with higher modified adjusted gross incomes.
Does this reduce what the federal government owes?-2
The implementation of a large refundable tax credit increases federal spending, which may impact the national debt.
Does this reduce what the federal government spends?-2
The bill establishes a new tax credit program, which represents a new expenditure for the government.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial Assistance for Homebuyers: Eligible individuals can receive a credit equal to 10 percent of the purchase price of a primary residence, divided by five, up to a $25,000 limit (Section 2(a)(b)(1)-(2)).
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Support for Specific Occupations: First responders, childcare workers, and teachers receive a specific credit period and a set applicable amount of 10 percent of the purchase price (Section 2(d)(2)).
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Flexibility in Using the Credit: Taxpayers have the option to elect to have their credit transferred directly to their mortgage lender to assist with the purchase (Section 2(i)(1)).
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Inflation Protections: The dollar amounts for the credit are subject to annual inflation adjustments to account for the cost of living (Section 2(a)(b)(4)(D)).
Potential Negative Impacts for People
-
Income and Price Reductions: The amount of the credit can be reduced based on the taxpayer's modified adjusted gross income relative to the area median income (Section 2(a)(b)(3)).
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Purchase Price Limitations: The credit amount may be reduced if the purchase price of the residence exceeds 110 percent of the area median purchase price (Section 2(a)(b)(4)).
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Credit Recapture: If a taxpayer sells their principal residence or it ceases to be their primary residence during the credit period, they may have to pay back a portion of the credit (Section 2(h)(1)).
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Age Restrictions: The credit is not available to individuals who have not attained the age of 18 at the time of purchase (Section 2(a)(b)(4)(E)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+6Good For Low Income Households+5Good For Young Adults+5Good For Veterans+2Good For People With Disabilities+1Good For Women+1Good For High Income Households-2Good For Seniors-1
- Social Issues And Justice
- Improves Affordable Housing+6Improves Poverty Reduction+3
- Economy And Finance
- Reduces Middle Class Taxes+5Improves Economic Growth+3Reduces Government Spending-2Reduces National Debt-2Improves Fiscal Responsibility-1Reduces Inflation-1
- Governance And Ideology
- Improves Government Transparency+1
- 1/20/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.