📋 What Is the $15,000 First-Time Homebuyer Tax Credit?
The First-Time Homebuyer Tax Credit Act would provide a refundable tax credit of up to $15,000 (or 10% of the home's purchase price, whichever is less) to qualified first-time homebuyers.
Key Features of the Proposed Credit:
- ✓Up to $15,000 - Maximum credit amount (or 10% of purchase price)
- ✓Refundable - You get cash back even if you owe no taxes
- ✓First-time buyers - Haven't owned a home in 3+ years
- ✓Income limits apply - Based on area median income
- ✓Primary residence only - Must live in the home
- ✓Inflation-adjusted - Amount increases annually starting 2026
💡 What "Refundable" Means
Unlike regular tax credits that only reduce what you owe, a refundable creditgives you cash back. If you owe $5,000 in taxes and get a $15,000 credit, you'd receive a $10,000 refund!
✅ Eligibility Requirements
Based on the proposed legislation, here are the expected eligibility requirements:
✅ You Qualify If:
- • First-time buyer (no ownership in 3+ years)
- • Buying a primary residence
- • Income below limits (see below)
- • U.S. citizen or resident alien
- • Age 18 or older
- • Not claimed as dependent
❌ You DON'T Qualify If:
- • Owned a home in past 3 years
- • Buying investment property
- • Income exceeds limits
- • Buying from a relative
- • Non-resident alien
- • Claimed as someone's dependent
💰 Proposed Income Limits
| Filing Status | Full Credit | Phase-Out Ends |
|---|---|---|
| Single | Up to $100,000 | $120,000 |
| Married Filing Jointly | Up to $200,000 | $240,000 |
| Head of Household | Up to $150,000 | $180,000 |
*Based on Modified Adjusted Gross Income (MAGI). Limits may vary by area.
💵 How Much Would You Get?
The credit is 10% of the home's purchase price, up to $15,000 maximum:
| Home Price | 10% Calculation | Your Credit |
|---|---|---|
| $100,000 | $10,000 | $10,000 |
| $150,000 | $15,000 | $15,000 (MAX) |
| $250,000 | $25,000 | $15,000 (MAX) |
| $400,000 | $40,000 | $15,000 (MAX) |
| $500,000+ | $50,000+ | $15,000 (MAX) |
🎯 $15,000 Can Cover Your Down Payment!
On a $300,000 home with FHA (3.5% down), you'd need $10,500. The $15,000 credit would cover your entire down payment plus closing costs!
See FHA Down Payment Options →📊 Current Legislative Status
Bill Introduced
H.R.3475 - Bipartisan American Dream Act (119th Congress)
Senate Companion
S.2402 - First-Time Homebuyer Tax Credit Act of 2025
Committee Review
Currently in Ways and Means Committee
House Vote
Pending
Senate Vote
Pending
Presidential Signature
Pending
⚠️ Important: Don't Wait!
This bill may or may not pass. Don't delay your home purchase waiting for it. If it passes, you may be able to claim it retroactively. Start your homebuying journey now!
🎯 What Should You Do Now?
1. Get Pre-Approved Today
Don't wait for the credit. Start your homebuying process now. If the credit passes, you'll be ready to claim it.Get pre-approved now
2. Explore Existing Programs
Many states already offer down payment assistance, grants, and tax credits. Don't miss out on money that's available NOW.See DPA programs by state
3. Save Your Documentation
Keep records of your home purchase: closing documents, proof of first-time buyer status, income documentation. You'll need these to claim any credit.
4. Consider Low Down Payment Options
FHA (3.5% down), VA (0% down), and USDA (0% down) loans can get you into a home with minimal upfront costs—even without the tax credit.Learn about FHA loans
❓ Tax Credit FAQ
Is the $15,000 tax credit available now?
No. The bill has been introduced in Congress but has not passed yet. It's currently in committee review. We'll update this page when the status changes.
Would I have to pay it back?
Under the current proposal, no—as long as you live in the home for at least 4 years. If you sell or stop using it as your primary residence within 4 years, you may have to repay a portion.
Can I combine this with other programs?
Likely yes. The proposed credit would be in addition to state and local down payment assistance programs. You could potentially stack multiple benefits.
What if I already bought a home in 2025?
If the bill passes with retroactive provisions, you may be able to claim the credit on your 2025 tax return. Keep all your closing documents!
🏠 Don't Wait—Start Your Journey Today!
Whether the tax credit passes or not, there's never been a better time to explore your homebuying options. Get pre-approved and see what you qualify for!