# First-Time Homebuyer Tax Credit Act of 2024

This bill creates a new tax credit to help people buy their first home. If you're buying a house for the first time, you could get money back on your taxes equal to 10 percent of what you paid for the home, up to a maximum of $15,000. For example, if you buy a $200,000 house, you'd normally get $20,000 (10 percent), but the law caps it at $15,000. If you're married and filing taxes separately, your maximum would be $7,500 instead.

To qualify, you need to meet several requirements. You can't have owned a home in the three years before this purchase, and you need to be at least 18 years old. The home has to be your main residence, and you need to get a federally-backed mortgage (the kind most people use). You also can't buy from a family member. Additionally, your income can't be too high—the credit starts to shrink once your income exceeds 150 percent of the area median income for your region, and it disappears entirely at higher income levels. Similarly, if the home costs significantly more than the typical home price in your area, your credit gets reduced.

Here's an important catch: if you sell the house within four years, you'll have to pay back part of the credit. The amount you owe back depends on how quickly you sell. If you sell in the first year, you'd owe back 25 percent of the credit for each remaining year in that four-year window. However, you won't owe anything back if you sell due to death, a job transfer, military orders, or an involuntary event like a fire or natural disaster.

The bill also includes an unusual option: you can let your mortgage lender claim the credit instead of you. If you choose this, the lender would give you the money upfront (as a discount on your loan or down payment help) rather than you claiming it on your taxes later. This could help people who need cash immediately to buy a home but wouldn't benefit from a tax credit until filing their taxes months later.