Sponsors (4)
The bill expands access and liquidity for first-time and first-generation homebuyers through a Treasury-backed mortgage program and partner protections, but it shifts notable market and fiscal risk to taxpayers, may raise borrower costs if solvency actions are taken, and could exclude some needy households while relying on minimal documentation that raises default risk.
First-time and first-generation homebuyers with incomes up to program limits gain access to 20-year fixed, insured/guaranteed single-family mortgages, increasing their chances of buying a home.
A Treasury-backed purchase and liquidity program for securities tied to these mortgages is expected to expand market participation and may lower borrowing costs for eligible buyers.
Provides liability protection for States, eligible entities, and creditors who rely in good faith on borrower attestations, reducing legal barriers to outreach and participation by local partners.
Taxpayers and the federal balance sheet may be exposed to mortgage-market losses and ongoing costs if Treasury purchases and sale receipts or appropriations do not cover program losses or administrative expenses.
Permitting attestation-only (minimal documentation) for eligibility increases risk of ineligible participation and higher default rates, which could raise program losses and harm lenders or taxpayers.
Waiver authority to raise mortgage insurance or guarantee fees above 4% to protect solvency could result in higher borrowing costs for eligible buyers if invoked.
Based on analysis of 2 sections of legislative text.
Sets up LIFT HOME funds in federal loan guarantee agencies and gives Treasury authority to buy and manage securities to support guaranteed mortgages for low-income first-time homebuyers (case numbers ≤ Dec 31, 2027).
Introduced September 4, 2025 by Mark R. Warner · Last progress September 4, 2025
Creates a new program within each federal loan guarantee agency to support guaranteed mortgages for low-income first-time homebuyers whose mortgage case numbers are issued on or before December 31, 2027. The program authorizes dedicated LIFT HOME funds, requires HUD to transfer amounts to Treasury to buy securities and cover shortfalls and administrative costs, and lets Treasury designate financial institutions or other federal entities to act as agents and manage purchased financial instruments and related program operations.