Sponsor
Jeff Crank
Representative · R-CO
Representative · R-CO
The bill helps some homebuyers with student loan debt qualify for mortgages by having up to $25,000 of third‑party student loan payments treated as concessions and standardizing agency treatment, but it limits who benefits to new primary residences, caps the credit at $25,000, and imposes verification burdens on lenders.
Homebuyers with student loan debt can have up to $25,000 of interested‑party student loan payments counted as financial concessions, improving mortgage underwriting and increasing eligibility for some borrowers.
Fannie Mae and Freddie Mac are directed to accept these student‑loan‑payment concessions within 30 days, creating a standardized underwriting treatment that reduces lender uncertainty and could increase consistent access to loans.
Buyers are limited to receiving concession treatment for at most $25,000 of interested‑party student loan payments, so households receiving larger amounts of assistance get less underwriting benefit.
Only newly constructed primary residences are covered, excluding buyers of existing homes, second homes, and investment properties from the benefit and narrowing who can use the policy.
Requiring lenders/servicers to verify Title IV student loan payments for concession treatment could add operational complexity and compliance costs for financial institutions.
Based on analysis of 2 sections of legislative text.
Requires FHFA to direct Fannie Mae and Freddie Mac to treat certain interested-party student loan payments as financial concessions (not sales concessions), capped at $25,000.
Official title: To require that certain payments to Federal student loans to the buyer of a home be classified as a financial concession by the Federal National Mortgage Association and the Federal Home Loan Mortgage Association.
Introduced August 13, 2026 by Jeff Crank · Last progress August 13, 2026
Directs the Federal Housing Finance Agency (FHFA) to require Fannie Mae and Freddie Mac to treat certain seller/ interested-party payments toward a buyer's student loan as financial concessions (not sales concessions), up to $25,000. The FHFA must issue this directive within 30 days of the law taking effect. The change applies to payments made by an interested party toward a buyer's Title IV student loan for a newly constructed primary residence, and it alters how those payments are counted in underwriting and pricing by the enterprises.