US HB7160

Establishes a refundable tax credit equal to 10% of the purchase price of a principal residence for first-time homebuyers, up to a maximum of $25,000, paid out over 5 years ($5,000 per year)

Requires buyers to have no ownership interest in any residence during the 3 years prior to purchase, be at least 18 years old, and finance through a federally-backed mortgage

Phases out the credit for taxpayers with modified adjusted gross income exceeding 150% of area median income, and for homes priced above 110% of area median purchase price

Provides enhanced benefits for teachers, childcare workers, and first responders, who may receive the full 10% credit in a single year rather than spread over 5 years

Allows taxpayers to transfer the credit to their mortgage lender at closing in exchange for immediate cash payment toward down payment or closing costs, with the lender receiving reimbursement from the Treasury