The No Federal Taxpayer-Funded Housing for Illegal Aliens Act of 2026 prohibits the use of federal funds to provide housing assistance to individuals who are unlawfully present in the United States. The bill defines covered housing assistance broadly to include rental help, vouchers, mortgage support, utility bills, hotel stays, and various stabilization services aimed at securing or maintaining a home. Federal agency heads must enforce this ban by requiring fund recipients to certify compliance, monitoring their activities, and imposing civil penalties or periods of ineligibility for any violations. The prohibition does not apply to funds used specifically for enforcing immigration or criminal laws.
The First Time Homebuyer Debt Reduction Act directs the Federal Housing Finance Agency to require Fannie Mae and Freddie Mac to treat student loan payments made by third parties toward first-time buyers as financial concessions rather than sales incentives. This classification applies specifically to payments for newly constructed principal residences, allowing these contributions to be counted toward a buyer's down payment or closing costs without triggering penalties associated with seller financing. However, the bill limits this benefit by stipulating that any portion of the student loan payment exceeding $25,000 will still be classified as a sales concession.
The MOVE Act directs the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to start buying and bundling specific conventional mortgages within 180 days of the law's enactment. These mortgages must allow homeowners to transfer their loan's interest rate, terms, and balance to a new property within 90 days of selling their current home. By purchasing these loans, the bill aims to create a market for portable mortgages that facilitate easier home sales by preventing rate locks from hindering transactions. The legislation defines eligible loans based on existing standards set by the two government-sponsored enterprises.
The House Our Heroes Act expands support for veterans struggling with guaranteed housing loans by allowing the Department of Veterans Affairs to offer educational courses on credit improvement, financial management, and loss mitigation options. Additionally, the bill permits the agency to make partial claims and modify loan terms, such as interest rates and payment schedules, for specific loans that go into default between May 1, 2025, and November 28, 2026. These measures aim to provide more flexible assistance tools to help veterans avoid foreclosure or manage their debts without strictly following previous mandatory procedures.
This bill imposes new taxes on large investment firms, known as hedge funds, that own multiple single-family homes to discourage them from holding properties as long-term investments. Under the tax provisions, these firms would face a 50 percent charge on the value of any new homes they buy and an annual penalty of $50,000 for every home they hold beyond a specific limit that decreases over time. The legislation also creates a Housing Downpayment Trust Fund financed by these taxes to provide grants for down payments and closing costs to low-to-moderate-income buyers. Additionally, the bill disallows mortgage interest and depreciation tax deductions for owners subject to these new taxes and bars federal mortgage agencies like Fannie Mae and Freddie Mac from lending to or buying mortgages from these large investors.
The Making Condos Safer and Affordable Act of 2026 expands federal mortgage insurance options for condominium projects to help finance repairs and replacements of shared facilities like roofs, elevators, and common areas. It allows the governing body of a condominium to take out loans secured by future mandatory payments from individual unit owners, with the government potentially insuring up to 90 percent of the project cost. Additionally, the bill modifies existing rehabilitation loan programs to let individual condo owners use these funds to pay for special assessments related to building improvements or to build reserves for future maintenance. The legislation also streamlines regulations for managing these rehabilitation projects and adjusts loan limits to better reflect the costs of such repairs.
This bill creates a new tax credit for homeowners who pay interest on loans used to buy, build, or improve their primary residences. The credit allows taxpayers to directly reduce their federal income tax liability by up to $2,000 annually, or $1,000 for married individuals filing separately, provided their modified adjusted gross income does not exceed specific thresholds that vary by filing status. The amount of the credit is reduced by $20 for every $1,000 that a taxpayer's income exceeds these limits, and the provision includes an automatic inflation adjustment mechanism starting in 2028. This legislation applies to taxable years beginning after December 31, 2026, and excludes nonresident aliens from claiming the benefit.
The Affordable Homes for Veterans Act of 2026 requires lenders to process applications for assuming existing VA home loans within 45 calendar days. This bill also mandates that the Department of Veterans Affairs update its guidance to ensure lenders cannot discourage applicants by suggesting longer wait times. Additionally, the law directs the Office of Inspector General to conduct a comprehensive assessment of current processing speeds and denial rates, with a report due to Congress within 18 months. These measures aim to make the process of taking over a veteran's home loan faster and more transparent for potential buyers.
The Housing Financial Literacy Act of 2026 offers a financial incentive for first-time homebuyers by reducing their mortgage insurance premiums. To qualify for this discount, applicants must complete a financial literacy housing counseling program before signing their mortgage application or sales agreement. The bill lowers the premium rate by 25 basis points compared to the standard amount set by the Secretary, provided the counseling is finished prior to the mortgage signing. This policy directly affects individuals purchasing their first home who participate in the required educational program.
The Homeownership Eligibility Reform Act restricts access to government-backed and private mortgage insurance for single-family homes to individuals who are U.S. citizens. Specifically, the bill amends laws governing the Federal Housing Administration, Fannie Mae, and Freddie Mac to require that borrowers for one-to-four-unit properties must be citizens to qualify for their mortgage products. This change directly affects foreign nationals and non-citizen residents who currently might purchase homes with these types of financing, effectively limiting their eligibility for these specific mortgage programs.
