S. 2719: Low-Income First-Time Homebuyers Act of 2025

This bill, known as the Low-Income First-Time Homebuyers Act of 2025, aims to assist low- and moderate-income individuals who are first-time and first-generation homebuyers in obtaining affordable and sustainable home loans. Here is a summary of the key components of the proposed legislation:

Wealth-Building Home Loan Program

The bill establishes a fund called the LIFT HOME Fund within each Loan Guarantee Agency. This fund will be used for creating a program that makes mortgage loans accessible to eligible homebuyers.

Use of Funds

The funds will be managed by the respective Secretaries of the Loan Guarantee Agencies. Funding allocation includes:

• Transfer of amounts to the Treasury to facilitate the purchase of securities tied to home loans.
• Covering costs associated with guaranteed loans, including any necessary modifications.

Covered Mortgage Loans

The program will provide specifically defined "covered mortgage loans," which must:

• Be insured or guaranteed by the Federal Housing Administration (FHA) or the Department of Agriculture for specific terms.
• Have an interest rate fixed over the life of the loan.
• Be secured against single-family residences that serve as the principal homes for eligible borrowers.

Eligibility Criteria

To qualify for the program, homebuyers must meet the following criteria:

• Be classified as a first-time homebuyer, meaning they have not owned a home in the past (with some exceptions for heirs).
• Be classified as a first-generation homebuyer, meaning that their parents or legal guardians do not currently own a home.
• Have a household income that falls below specified limits, generally not exceeding 120% of the area's median income or, in high-cost areas, 140%.

Operational Framework

The program will feature:

• Outreach programs to ensure potential participants are aware of available resources.
• Support for the sale of mortgage-backed securities to maintain liquidity and expand participation in the program.
• Authority for several departments and agencies to administer the program efficiently.

Regulatory and Administrative Guidelines

The administration of this program will be guided by specific regulations issued by the Secretaries of Housing and Urban Development, Agriculture, and the Treasury, ensuring compliance and efficient progress in all activities related to the program.

Funding Authorization

The bill authorizes the appropriation of necessary funds to support the LIFT HOME Program, establishing a financial basis to implement its provisions effectively.

Reliance on Borrower Attestations

No extra documentation is needed beyond the borrower's attestation to demonstrate eligibility. Good-faith reliance on these attestations will protect involved entities from liability issues, provided they follow proper procedures.

Relevant Companies

• BRK.A - Berkshire Hathaway Inc. could be impacted through its subsidiaries involved in real estate and mortgage financing.
• JPM - JPMorgan Chase & Co. may see changes in demand for home loans and mortgage-backed securities given their involvement in these areas.
• PNC - PNC Financial Services may experience increased mortgage originations from the eligibility expansion for first-time homebuyers.