S 2719119th CongressIn Committee

LIFT Homebuyers Act of 2025

Introduced: Sep 4, 2025

Housing & Urban Development

Standard Summary

Comprehensive overview in 1-2 paragraphs

The LIFT Homebuyers Act of 2025 would create a government-backed program to help low- and moderate-income, first-time and first-generation homebuyers purchase single-family homes as their primary residence. It establishes a LIFT HOME Fund within each Loan Guarantee Agency (the FHA program under HUD and the Rural Housing Service under USDA) to support financing and securitization activities. The program is designed to buy or back securities tied to covered mortgage loans, set affordable pricing to keep monthly payments near those of standard 30-year mortgages, and provide outreach and counseling to boost participation. Eligibility centers on income limits, first-time and first-generation status, and certain definitions around “heir property” and ownership history. The effort would involve coordination among HUD, USDA, and the Treasury, with various regulatory and financing authorities delegated to implement the program, and it authorizes appropriations as needed. In short, the bill aims to expand access to affordable, wealth-building home loans for eligible buyers by using a government-backed securitization framework and targeted pricing, while prioritizing outreach and solvency safeguards.

Key Points

1Establishment of LIFT HOME Funds and Program
2- Creates a LIFT HOME Fund in each Loan Guarantee Agency (HUD/FHA and USDA/Rural Housing Service) to finance the program, managed by the respective secretary with defined criteria.
3- The Treasury may purchase securities backed by covered mortgage loans, designate financial agents, and use federal agencies on a reimbursable basis to support program operations.
4Covered Mortgage Loans and Eligibility
5- Defines “covered mortgage loans” for HUD (FHA-insured) and USDA (USDA 502(h) guaranteed) programs, including terms (commonly 20-year original terms), caps on mortgage insurance or guarantee fees (not more than 4%), and a requirement that loans be secured by a single-family principal residence.
6- Eligibility for HUD and USDA components requires income limits (120% of area median income, or 140% in high-cost areas), first-time homebuyer status, and first-generation status as defined by specific parental ownership criteria or foster care circumstances.
7- First-generation definition includes individuals whose parents/guardians did not own a principal residence in any state (with exceptions for heir property) and/or whose spouse/partner did not own such a residence in the prior three years; includes certain foster-care scenarios.
8Pricing and Liquidity Goals
9- Each Agency must set pricing terms so monthly payments (principal + interest) fall between 100% and 110% of the corresponding 30-year loan payment for the same loan balance, with flexibility to ensure liquidity and broaden participation.
10- HUD and Treasury coordination to set pricing for securities guaranteed by the Association (GNMA) to support liquidity and market participation by originators, servicers, issuers, and investors.
11GNMA Involvement and Fees
12- The Government National Mortgage Association (GNMA) can issue guarantees on securities backed by these loans and collect guaranty fees consistent with existing statute, paid at securitization.
13- GNMA and participating agencies may enter into new commitments and utilize authorized authorities to carry out the program.
14Outreach, Implementation, and Oversight
15- Agencies must establish outreach and counseling programs to raise awareness of the Program among stakeholders.
16- The Secretary of HUD, Secretary of Agriculture, and Secretary of the Treasury have authority to issue regulations, guidance, and forms to implement the program in a timely manner.
17- The program requires case numbers issued on or before December 31, 2027, to be eligible for the covered mortgage loan program, extending to existing insured/guaranteed loans.
18Appropriations and Solvency Safeguards
19- The bill contemplates the use of credits and subsidies to support loan guarantees, with waivers possible to protect the solvency of associated insurance funds.
20- Appropriations are authorized as necessary to carry out the LIFT HOME Program.

Impact Areas

Primary group/area affected- Low- and moderate-income individuals and households who are first-time buyers and first-generation homeowners, particularly those with incomes up to 120% of area median income (or up to 140% in high-cost areas), seeking to purchase a single-family home as a primary residence.Secondary group/area affected- Mortgage originators, servicers, mortgage bankers, financial institutions, and investment professionals who participate in HUD/FHA and USDA loan programs and in GNMA-backed securitizations; they gain a role as agents and service providers under the program.Additional impacts- Potential expansion of liquidity for securities backed by covered mortgage loans, possibly affecting the broader mortgage-backed securities market.- Increased government involvement in mortgage finance through cooperative actions among HUD, USDA, and the Treasury, and the creation of new funding and administrative structures (LIFT HOME Funds).- Taxpayer and budget considerations due to credits, subsidies, and appropriations tied to the program, as well as solvency protections for related insurance funds.First-time homebuyer: someone who has not owned a home in the past, using the definition in the Cranston-Gonzalez National Affordable Housing Act, with a caveat regarding heir property.First-generation homebuyer: someone whose parents or guardians did not own a principal residence in any state (and related criteria around foster care or recent spousal ownership history).Heir property: property owned by multiple heirs by inheritance, where title passed through intestate succession.Covered mortgage loan: a mortgage loan eligible under HUD (FHA-insured) or USDA (USDA 502 guarantees) programs that meets the loan term and caps described in the bill.LIFT HOME Fund: a dedicated fund within each Loan Guarantee Agency used to implement and manage the program.

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