President Biden has signed legislation expanding the first-time homebuyer tax credit to $20,000, up from the previously proposed $10,000, in an effort to address the nation's housing affordability crisis.

Eligibility

The credit is available to buyers who haven't owned a home in the past 3 years and are purchasing a primary residence under $400,000. The credit can be applied at closing or claimed on federal tax returns.

Impact Projections

The Congressional Budget Office estimates the expanded credit will help 2 million first-time buyers over the next 5 years, with the greatest impact in markets where down payments are the primary barrier.