Introducing the LIFT Homebuyer Act of 2015

There may soon be a new mortgage option for first-generation, first-time homebuyers.

Introduced in the US Senate on Sept 4, 2025 and sponsored by Sen. Mark Warner (D-VA), the bill creates a wealth-building mortgage product for first-time, first-generation, “low-to-moderate income” buyers.  The bill has support in both houses of Congress, but keep in mind, bills often change during approval negotiations.  As introduced, here’s what the bill contains;

The bill is specifically for Low-Income First-Time buyers (LIFT). It offers a no down payment, 20-year fixed-rate mortgage that is amortized over 30 years and a dramatically lower interest rate. The result is increased affordability, accelerated equity and expanded access, which is exactly what is needed for community stability and growth.

Here are the rules for eligibility:

1. Must be a first-time home buyer

   Every Home buying applicant must NOT have owned a home in the last 36 months. If there are co-applicants, they also must meet this first-time buyer definition.  There are exceptions for inherited property and certain recently divorced or “displaced homemaker” situations.

2. Must be a first-generation home buyer

   To be eligible, a home buyer's parents or legal guardians may not have owned a home during the 36 months prior to purchase. For buyers whose parents or guardians are deceased, the bill requires that parents and guardians did not own a home at their time of passing. The rule applies for all applicants on the mortgage. This requirement is waived for buyers who previously lived in foster care.

   I could not get clarification, so I am not sure if the “heir” and “displaced homemaker” exception applies to parents and guardians.

3. Must purchase a 1-unit home

   The LIFT Act is for single-unit homes only. This includes: Single-family detached homes, Single-family attached homes, Townhomes and Condominiums. Manufactured homes and mobile homes may be eligible if the home is on a permanent foundation, is taxed as real estate, and is built after June 15, 1976.

4. Must earn a low-or moderate income for your area

   The LIFT Act is limited to low-to-moderate income households as defined by HUD’s measure of area median income (AMI), which is different in every city and adjusts for household size.

   In standard cost of living areas, income must be at or below 120% of AMI to qualify and in high cost areas, income must be at or below 140% of AMI to qualify.

   The AMI for Montgomery County, Ohio is $67,882 so 120% is $81,458, and remember, it adjust for household size.

5. Must self-certify your eligibility

   The program trust LIFT buyers to certify that they meet the program’s parental and legal guardian homeownership status eligibility requirements.

6. Must be mortgage-eligible

   LIFT buyers must meet any and all standard mortgage guidelines, including meeting minimum credit score requirements, showing a capacity to repay a loan, and having lawful U.S. residency. Individual lenders may impose additional overlays beyond basic requirements, so some comparative shopping is advisable.

This is a great opportunity but you have to be mortgage-ready, so if 2026 is your year, get with your favorite mortgage lender (me) and get things started!

This article provides information about The LIFT Homebuyers Act of 2025, a proposed bill that has not yet been passed into law. Please note that details are subject to change as the legislative process continues.

Resource – Congressional Housing Bill Tracker

---

Alfred Patterson

NMLS # 373560

G and G Mortgage, LLC

937 520-1401