Section 1 Short title
This Act may be cited as the “First Time Homebuyer Debt Reduction Act”.
First Time Homebuyer Debt Reduction Act
A BILL
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.
Sec. 2 Classification of student loan payment as a financial concession
In general— Not later than 30 days after the enactment of this Act, the Director of the Federal Housing Finance Agency shall require the enterprises to classify a covered payment as a financial concession with respect to an interested party contribution in the sale of a home, subject to the limitation described in subsection (b).
Limitation— A portion of a covered payment that is in excess of $25,000 shall be classified as a sales concession.
Definitions— In this Act:
Enterprises— The term “enterprises” means—
the Federal National Mortgage Association; and
the Federal Home Loan Mortgage Association.
Covered payment— The term “covered payment” means a payment towards a student loan, as defined in Title IV of the Higher Education Act, by an interested party to the buyer of a home.
Home— Newly constructed principal residence of the buyer of a home.