Housing (Homeownership)

The LIFT Homebuyers Act of 2025 creates a federal program to help low-income first-time homebuyers purchase single-family homes. It establishes the "LIFT HOME Fund" within HUD and USDA to support eligible mortgages with monthly payments capped at 100-110% of standard rates for comparable loans. The bill directly affects homebuyers with household income under 120% (or 140% in high-cost areas) of local median income who are both first-time buyers and first-generation homebuyers (with no prior home ownership by them or their parents). Key mechanisms include waiving some insurance premium caps, requiring borrower self-attestation for eligibility, and mandating outreach programs to expand participation.

This bill requires federal housing agencies (like HUD and Fannie Mae) to prioritize qualified first-time homebuyers when selling single-family homes (1-4 units). For 180 days after listing, properties must be offered only to eligible buyers (individuals, nonprofits, local governments, or community land trusts) at fair market value based on recent third-party appraisals, with public online listings showing the priority window. Covered entities must report quarterly sales data, including prices relative to appraised value, and annual audits will verify compliance. Institutional investors (e.g., rental companies) cannot purchase during the priority period. The law aims to increase access to homeownership for specific groups through transparency and structured sales processes.

The SUPPLY Act establishes a federal program to insure second loans (additional financing) for building accessory dwelling units (ADUs) on single-family properties. This insurance, administered by the Department of Housing and Urban Development, covers up to 30% of a standard one-unit home loan amount or 100% of the property value after construction (with potential increases based on 50% of projected rental income). Homeowners seeking to add ADUs - such as backyard cottages, converted basements, or detached units - can use this insurance to secure financing, with a government premium of up to 1% annually. The bill also requires Fannie Mae and Freddie Mac to purchase and securitize these insured loans, potentially expanding access to ADU financing.

The Neighborhood Homes Investment Act creates a new tax credit for developers who build or rehabilitate affordable homes in distressed communities. The credit is calculated as the lesser of (1) the difference between development costs and sale price, (2) 40% of development costs, or (3) 32% of the national median home price. It applies only to homes sold to qualified homeowners with income up to 140% of area median income in designated "qualified census tracts" (areas with high poverty rates, low median home values, and low median family income). Developers must meet quality standards and repay the credit if the home is sold within 5 years of the affordable sale. This credit aims to address the "value gap" that prevents housing development in distressed communities by incentivizing affordable home construction and rehabilitation.

The Downpayment Toward Equity Act of 2025 creates a federal program to provide financial assistance to first-generation homebuyers for down payments, closing costs, and other home purchase expenses. It authorizes $100 billion in funding to be distributed through states and eligible entities, with grants that can cover up to $20,000 or 10% of a home's purchase price (whichever is greater). To qualify, homebuyers must meet income limits (up to 120-140% of median area income), be first-time homebuyers with no prior home ownership by their parents, and complete homebuyer counseling. The program requires recipients to occupy homes as primary residences for at least five years, with repayment required if they sell sooner, and states must report on program demographics to ensure equitable outcomes.

This bill modifies the USDA's 502 housing loan program to make it easier for rural homeowners to transfer properties with existing loans. It allows qualified buyers to assume a guaranteed loan when purchasing a property, releasing the original borrower from liability and transferring the loan's obligations to the new owner. The changes apply to loans guaranteed under the program after the bill's enactment, directly affecting rural homeowners and buyers in USDA loan programs. The bill also permits servicers to charge fees for transaction costs related to these loan assumptions.

HR 7051, the American Dream Act, allows individuals aged 65 or older to exclude taxable gains from selling their home to a first-time homebuyer under specific conditions. The bill applies when the home sells for $500,000 or less, the buyer is a first-time homebuyer purchasing it as their primary residence, and the buyer provides a sworn statement confirming these details. The exclusion is only available for sales occurring after December 31, 2026, and expires after December 31, 2031. This policy directly affects seniors aged 65+ selling their primary residence and first-time homebuyers purchasing it as their main home.

This bill increases FHA loan limits for manufactured home purchases, home improvements, and accessory dwelling units under the National Housing Act. It raises the maximum loan amount for single-section manufactured home purchases to $106,405 and multi-section homes to $195,322, while setting a $75,000 cap for home improvements. The bill also requires annual adjustments to these limits based on HUD's methodology and mandates a HUD study comparing off-site construction (including manufactured/modular homes) to site-built housing on cost, quality, maintenance, and applications like accessory dwelling units. It directly affects borrowers seeking FHA financing for these housing types.

This bill imposes an annual $10,000 tax on large residential property owners who own more than 75 single-family homes (defined as properties with up to 4 units), excluding nonprofits, construction companies, and owners of federally subsidized housing. Revenue from this tax funds a new Housing Trust Fund, which provides down payment assistance grants to homebuyers. Priority for these grants goes to families purchasing homes sold by owners subject to the tax. The tax applies to taxable years beginning after December 2025.

Tribal Trust Land Homeownership Act of 2025 This act sets forth requirements for the processing of a proposed residential leasehold mortgage, business leasehold mortgage, land mortgage, or right-of-way document by the Bureau of Indian Affairs (BIA). The BIA must notify lenders upon receipt of such documentation, perform a preliminary review of such documents not later than 10 days after receipt, and approve or disapprove of such documents within 20 or 30 days, depending on the type of application. Additionally, the act sets forth requirements for the BIA regarding (1) response times for the completion of certified title status reports, (2) notification of delays in processing, and (3) the form of notices and delivery of certain reports. The act also provides relevant federal agencies and Indian tribes with read-only access to the Trust Asset and Accounting Management System maintained by the BIA. The Government Accountability Office must report on digitizing documents for the purpose of streamlining and expediting the completion of mortgage packages for residential mortgages on Indian land. Finally, the act establishes within the BIA's Division of Real Estate Services the position of Realty Ombudsman.