Are you looking to buy a home for the first time? The market is not as scary as you might think. As we prepare for a new presidential administration, this blog will discuss a few keys to look out for in 2025, including the First-Time Homebuyer Tax Credit Act of 2024 and whether the $15,000 first-time homebuyer grant will pass in the new year. Additionally, we’ll cover the potential impact of the Trump administration’s proposed tariffs and why NHC’s unbeatable home prices and easy financing process should be capitalized on now instead of later. With homes starting for UNDER $200,000, don’t miss your chance to purchase before prices potentially increase during the upcoming months!

Who Qualifies as a First-Time Homebuyer?

There are many misconceptions about this topic. Believe it or not, the term “first-time homebuyer” can actually be quite flexible. On top of those who have never purchased a home before, this can also apply to those who are purchasing a home again after not owning a primary residence for the past three years or more. For example, renting a home for four years after selling a prior property still positions you as a first-time buyer. Simply put, if the First-Time Homebuyer Tax Credit Act of 2024 were to pass, it would apply to a wide range of buyers.

Understanding these qualifications can go a long way for aspiring homeowners seeking financial relief such as zero-down loans or other programs. At NHC, we’ll help you understand your financing options to get you and your family a mortgage you can truly afford. Check out our mortgage calculator to see what your monthly payments could look like.

What is the First-Time Homebuyer Tax Credit Act of 2024?

Introduced by Senators Sheldon Whitehouse (D-RI), Martin Heinrich (D-NM), and seven other co-sponsors in March of 2024, the First-Time Homebuyer Tax Credit Act of 2024 proposes a refundable tax credit of up to $15,000 for eligible first-time buyers. Its key goal is to lower the financial barriers for those looking to enter the housing market, particularly amid rising costs. Eligibility is to those earning less than 150% of the area median income and purchasing homes priced below 110% of the local median price. Buyers may also claim the credit directly at closing, easing upfront expenses.

The main question is: Will the First-Time Homebuyer Tax Credit Act of 2024 pass? It has yet to be voted on in the House of Representatives and with new leadership coming to Washington D.C. in 2025, the outlook is worth monitoring. Because there is no guarantee that this legislation will pass, having alternatives to the first-time homebuyer tax credit is important.

Like the proposed legislation, our low home prices are designed to make the American Dream affordable for everyone. Want to see how you could get more space for less money? Check out our floor plans to learn more.

Outlook for the First-Time Homebuyer Tax Credit

So, will the $15,000 first-time homebuyer grant pass under a Donald Trump administration? Good question. The short answer is that it remains to be seen. It is worth noting, however, that the legislation is sponsored by the Democratic Party. This could hinder its reception under a Republican-controlled House and Senate. With this said, however, making homeownership affordable is an issue that sees bipartisan support.

While the First-Time Homebuyer Tax Credit Act of 2024 may not receive enough votes to pass, the Republican Party’s platform does state support for tax incentives. These remain unclear, though. With rising demand for lower interest rates and more affordable prices, it will be interesting to see how the market continues to evolve.

How Tariffs Could Impact the Housing Market

On top of monitoring the First-Time Homebuyer Tax Credit Act of 2024, Trump’s proposed tariffs are another topic of interest for those interested in buying a home. Why are they important? Because the prices of construction materials—from lumber to appliances—could increase, this would force home builders to raise their prices, possibly offsetting the first-time homebuyer tax credit if it passes. Simply put, the time to buy is now.

At NHC, we’re here to help you and your family find the right space at the right price. Ready to kick off the new year with a new home? Let’s take a look at a few alternatives to the first-time homebuyer tax credit that could help save you money in the long term.  

Alternatives to the First-Time Homebuyer Tax Credit

If you’re searching for an alternative to the first-time homebuyer tax credit, look no further than our affordable homes. When thinking about a mortgage, there are a few routes you could take as a first-time buyer to potentially lower your down payment and get better interest rates.

FHA Loans

Backed by the Federal Housing Administration, this alternative to the first-time homebuyer tax credit is designed for borrowers with lower credit scores or smaller down payments. These loans allow down payments as low as 3.5%, making them an excellent option for first-time buyers.

VA and USDA Loans

For eligible veterans and active-duty service members, VA loans offer zero down payment, competitive interest rates, and no private mortgage insurance. Similarly, USDA loans are ideal for rural homebuyers.

Loans From Homebuilders

Another alternative to the $15,000 first-time home buyer tax credit is to secure financing directly through your home builder. At NHC, we even help buyers cover the closing costs of their new home. Plus, when you finance through our partner, NHC Mortgage, your new home deposit will be UNDER $100.

Click here to check out our communities across Texas, Florida, North Carolina, and Alabama. You can also contact us to learn more about our newly constructed properties. Don’t miss your chance to secure your piece of the American Dream before prices potentially increase in 2025!

FAQs

How can I finance a home without waiting for the First-Time Homebuyer Tax Credit?
Although it remains to be seen whether the $15,000 First-Time Homebuyer Tax Credit will pass, there are still other options such as zero-down VA and USDA loans and FHA loans.

Did Joe Biden pass the first-time homebuyer tax credit?
As of November 2024, the first-time homebuyer tax credit has not been passed.

What are the benefits of being a first-time home buyer?
First-time homebuyers can benefit from several incentives, including lower down payment requirements with certain loans and builders such as NHC covering closing costs.

What is the difference between a first-time home buyer and a new home buyer?
A first-time homebuyer is someone who has either never purchased property before OR has not owned a primary residence for three years or more.