First-time homebuyers could claim up to $15,000 tax credit under HR 4717

What does this do?

HR 4717 would create a refundable tax credit equal to 10% of a home's purchase price, up to $15,000, for qualifying first-time homebuyers. The credit adjusts for inflation over time. Buyers may also transfer the credit directly to their mortgage lender at closing to reduce upfront costs immediately.

Who does it affect?

To qualify, a buyer must not have owned a home in the past three years, must be at least 18 years old, and must purchase the home using a federally backed mortgage. The credit phases out for earners above 150% of their area's median income, and also shrinks if the home's price is well above the typical local price.

Why does it matter?

Because the credit is refundable, buyers can receive the full amount even if it exceeds what they owe in taxes. Buyers who sell or move out within four years of purchase may be required to repay up to 25% of the credit for each remaining year in that window, with exceptions for death, natural disaster, job relocation, or military and government orders.

Where does it stand?