H.R. 7753: First Look for First-time Homebuyers Act of 2026

This bill, known as the First Look for First-time Homebuyers Act of 2026, aims to provide priority access for first-time homebuyers to certain foreclosed properties. Here are the key components of the bill:

15-Day First Look Period

When a covered property (a foreclosed residential property with one to four units) is listed for sale, it will only be available to first-time homebuyers for the first 15 days. During this period:

• Covered entities, such as the Federal Housing Administration and other government-related organizations, must ensure that these properties are not sold to others.
• If a covered entity believes that an extension of this 15-day period will enhance the likelihood of a first-time homebuyer purchasing the property, it may extend the period.

Pricing of Covered Properties

During the 15-day period, the properties must be listed at fair market value, which is determined by an independent appraisal or broker opinion received within the last 60 days. There are some exceptions:

• If the fair market value cannot be determined using the usual methods, the entity may use a standardized valuation model, provided they publicly disclose how this model works.

Public Listing Requirements

Covered entities must list the properties on a publicly accessible website during the first 15-day period, clearly indicating that they are available only to first-time homebuyers, along with a countdown of how many days are left in this exclusive period.

Prohibitions on Bundling

During the 15-day period, covered properties cannot be bundled together for sale. Each property must be sold individually to ensure fair access for first-time homebuyers.

Reporting Requirements

Covered entities are required to report to Congress every six months on:

• The number of offers made by first-time homebuyers for these properties.
• The number of properties sold to first-time homebuyers within the exclusive window.
• The pricing methodologies used.
• The ratio of sale prices to the fair market value as determined by independent appraisals or standardized models.

Annual Review and Reporting

Each covered entity's Inspectors General will conduct an annual review of all sales to check for compliance with the bill's provisions. They must submit their findings to Congress and post the results on their public websites.

Rulemaking and Effective Date

The bill requires covered entities to issue necessary rules within one year of its enactment to implement these provisions, including verifying the eligibility of first-time homebuyers. The law will take effect 30 days after the final rules are established.

Definitions

The bill defines the key terms used, including:

• Covered Property: Any single-family residential property (1 to 4 units) that is foreclosed or owned by a covered entity, with exceptions noted for certain programs.
• Covered Entity: Includes government agencies involved in housing, such as the Federal Housing Administration, the Federal National Mortgage Association, and others.
• First-time Homebuyer: An individual who has not previously owned a principal residence.

Relevant Companies

None found