Proposed $15,000 First-Time Home Buyer Tax Credit Sparks Hope for Affordable Housing in 2025
- Author: Margaret Hills
- Posted: 2025-01-06
This plan, which hasn't become official yet, could give financial help to first-time home buyers to make it easier for them to afford a house.
Even though this tax credit is not available right now, if you're looking to buy a home soon, you still have other options. Let's talk about what you might expect.
Understanding the Proposed $15,000 Tax Credit
The idea for this tax break was first brought up in 2021 and is being talked about again in 2024. If it's approved, first-time home buyers could get up to $15,000 to help buy their home.
The credit, based on 10% of the home's purchase price, would be given to you at the closing of the home sale, which means you could use it right away for your down payment or other house-buying costs.
However, if you sold the home or moved out within the first year, you'd have to pay back the whole amount. After that, the payback amount gets 25% smaller each year for four years, with some exceptions for things like divorce or military moves.
Has the Tax Credit Become a Law?
As of the beginning of 2025, the tax credit isn't available because it hasn't been turned into a law yet.
There's no certain time by which the law will pass—if ever—since it could face delays or not be approved at all.
Who Would Qualify for the Tax Credit?
The exact requirements for the tax credit have not been finalized since the law hasn't been passed. But, likely, it would require that:
- You haven't owned or been a co-signer on a mortgage in the last three years.
- Your income isn't more than 60% higher than the average for your area (with different rules for couples).
- The price of your home isn't more than the local average.
- The home has to be the primary place where you live.
- These rules are designed to help make buying a home possible for more people.
What About the $25,000 Home Buyer Grant?
There's another bill called the "Downpayment Toward Equity Act." This act might offer a $25,000 cash grant to first-time home buyers if it becomes law.
This grant, aimed at making down payments more affordable, would also have its own income and purchase price requirements. Both political parties support this, showing the desire to solve the housing affordability problem.
Read more: Proposed $25,000 Grant for First-Time Home Buyers Remains Under Congressional Review
Other Ways to Buy a Home
Don't worry if you can't wait for these laws to pass. There are already plenty of programs to help you buy your first home.
For example, special loans with low down payments or lower interest rates can make it easier for you to buy a house.
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For more information about housing loans and grants, check out the articles below:
- Easy Guide to Down Payment Help in the USA
- Home Buying Help for People With Disabilities
- Home Renovation Grants for Retirees: Upgrade Your Home Without Tapping Into Your Savings
