Congressman Krishnamoorthi Introduces First Home Affordability Act to Help Working Families Buy Their First Home

WASHINGTON — Today, Congressman Raja Krishnamoorthi (D-IL) introduced the First Home Affordability Act, legislation to help first-time homebuyers, especially working and middle-class families in Illinois, overcome the biggest barrier to homeownership: upfront costs. With more than 75 percent of homes on the market unaffordable to a typical household, many families who could manage a monthly mortgage are locked out before they ever get a chance to buy. The First Home Affordability Act would create a refundable tax credit during the first five years of homeownership, helping families stabilize their finances, build equity, and put down roots in their communities.

“For many Illinois families, the cost of buying a home has been pushed out of reach by surging housing prices,” Congressman Krishnamoorthi said. “My legislation, the First Home Affordability Act, creates a refundable tax credit for first-time homebuyers, helping break down that barrier and giving working families a fair shot to achieve the American Dream of building a middle-class life.”

What the First Home Affordability Act Does

• Creates a refundable tax credit of up to $25,000 for qualified first-time homebuyers, delivered over the first five years of ownership, with up to $5,000 per year.

• Provides assistance equal to 10 percent of the home’s purchase price up to $25,000.

• Targets middle-class families, with the credit phased down based on local Area Median Income.

• Applies only to buyers purchasing a home as their primary residence, promoting long-term ownership.

Additional Support for Community Workers

• First responders, K-12 teachers, and childcare workers may access the full $25,000 credit in the first year.

• Eligibility requires the profession to be the buyer’s primary occupation at the time of purchase.

The full text of the bill is available here.