First-Time Homebuyer Tax Credit — Is There One in 2026?

Short answer: there is no active federal first-time homebuyer tax credit for 2026. If you’re searching for this because you’ve heard about a “$15,000 homebuyer credit,” you’re likely thinking of a proposal from the Biden administration’s housing agenda that was floated but never passed Congress. It’s not law today, though — as covered below — several similar bills are currently pending in Congress.

The History: The Real Homebuyer Credit (2008–2010)

The credit people are usually remembering is the actual first-time homebuyer credit passed during the 2008 financial crisis to help stabilize the collapsing housing market. Here’s a quick summary of how it worked:

• 2008–2009: First-time buyers (no ownership in the prior three years) could claim up to $8,000. This version of the credit had to be repaid over 15 years for purchases made in 2008 — it functioned more like an interest-free loan.
• Extended buyers: A separate “long-time resident” credit of up to $6,500 was added for existing homeowners who had lived in their previous home for at least five consecutive years, if they bought a new one.
• Deadlines: The credit went through several extensions — from its original November 2009 deadline, to April 30, 2010 for signing a contract, with a final closing deadline of September 30, 2010.
• Income limits: Full credit was available up to $125,000 MAGI (single) / $225,000 (joint) for purchases after November 6, 2009; lower thresholds applied to earlier purchases.
• Fraud concerns: The IRS later identified tens of thousands of improper claims, including thousands from taxpayers under 18 who weren’t eligible to buy homes at all — a reminder that any revived version of this credit would likely come with stricter verification requirements.

The credit expired at the end of 2010 and has not been renewed at the federal level since.

What’s Actually Pending in Congress Right Now

The Biden-era $15,000 proposal never passed, but it’s not the only homebuyer credit idea in circulation. As of mid-2026, several bills are sitting in Congress — none enacted:

• First-Time Homebuyer Tax Credit Act (H.R. 4717 / S. 2402): Would create a refundable credit equal to 10% of the home’s purchase price, capped at $15,000, for qualified first-time buyers.
• Bipartisan American Homeownership Opportunity Act (H.R. 3475): Would let first-time buyers claim a credit equal to their down payment, up to $50,000, subject to income limits.
• Make American Housing Affordable (MAHA) Act: Introduced January 2026, this would offer up to $5,000 (single filers) or $10,000 (joint filers) toward a primary residence purchase, phasing out above $250,000/$500,000 income, claimable once every five years.

None of these have passed either chamber. If you see headlines or social posts claiming a homebuyer credit “just passed,” verify against Congress.gov before assuming it applies to you — there have been several viral misinformation cycles about a homebuyer credit “returning” over the past few years. I’ll update this page the moment any of these actually becomes law.

The 21st Century ROAD to Housing Act Is Now Law

While there’s still no federal buyer tax credit, real housing legislation has moved: the 21st Century ROAD to Housing Act became law on July 11, 2026. It passed the Senate 85-5 and the House 358-32 in June 2026 — a rare bipartisan landslide — and took effect after President Trump declined to sign it but also didn’t veto it.

It doesn’t put cash in buyers’ pockets the way a tax credit would, but it does restrict large institutional investors (those already owning 350+ single-family homes) from buying more, raises FHA loan limits, and funds incentives for local governments to loosen restrictive zoning and build more housing.

→ Full details on what the bill does: 2026 Housing Affordability Bill: What the 21st Century ROAD to Housing Act Means

What First-Time Buyers Can Actually Use in 2026

Absent a federal tax credit, a few real, currently-available tools are worth checking:

• The IRA first-time homebuyer exception. This one gets overlooked. The IRS lets first-time buyers withdraw up to $10,000 (lifetime limit) from an IRA before age 59½ without the usual 10% early-withdrawal penalty. From a Traditional IRA the withdrawal is still taxed as ordinary income; from a Roth IRA it can be both tax- and penalty-free if the account has been open at least five years. It applies per spouse, so a couple can potentially pull $20,000 combined. See how to withdraw money early from a 401k or IRA without a penalty and Traditional vs. Roth IRA rules for the full mechanics.
• FHA loans, which allow lower down payments (as little as 3.5%) than most conventional loans. See FHA vs. Conventional Loans for a full comparison of costs and qualification rules.
• State and local first-time buyer programs. Many states run their own down-payment assistance or tax credit programs independent of federal action — check your state housing finance agency.
• Mortgage interest and property tax deductions, if you itemize — see the current federal tax brackets and standard deduction to check whether itemizing beats the standard deduction for your situation.
• The capital gains exclusion when you eventually sell. Not a buyer-side benefit today, but worth knowing up front: married couples can exclude up to $500,000 ($250,000 single) in gain when they sell a primary residence they’ve owned and lived in for at least two of the last five years. See capital gains and exclusions when selling your home for the details.
• A high-yield savings account for your down payment fund. If you’re still saving, parking that money somewhere earning a real return beats a 0.01% checking account. See current high-yield savings rates.

If your mortgage payment has changed since you bought, that’s usually escrow-related rather than anything to do with a credit — see why your monthly mortgage payment went up for the common causes.

I’ll update this page immediately if a federal homebuyer credit is actually reintroduced and gains real momentum in Congress. Subscribe here to get notified.