US SB2402

Refundable tax credit equal to 10% of home purchase price, up to $15,000 ($7,500 for married filing separately), for first-time homebuyers of a principal residence in the United States

Credit phases out for taxpayers with modified adjusted gross income exceeding 150% of Area Median Income, and for homes priced above 110% of area median purchase price

Buyers must have no ownership interest in any residence during the prior 3 years, be at least 18 years old, and finance through a federally backed mortgage loan

Credit recapture applies if the home is sold or ceases to be principal residence within 4 years, with 25% recaptured per remaining year, though exceptions exist for death, involuntary conversion, divorce transfers, military service, or job relocation

Taxpayers may elect to transfer the credit to their mortgage lender at closing in exchange for an equivalent cash payment or down payment assistance, with the Treasury making advance payments to participating lenders