Sec. 302. Home loan program
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In addition to amounts otherwise available, there is appropriated for fiscal year 2026, out of any amounts in the Treasury not otherwise appropriated, to remain available until September 30, 2033— $4,000,000,000 to the Secretary of Housing and Urban Development for the cost of guaranteed or insured loans and other obligations, including the cost of modifying such loans, under subsection (e)(1)(A); $500,000,000 to the Secretary of Housing and Urban Development for costs of carrying out the program under paragraph
(1)and programs of the Federal Housing Administration and the Government National Mortgage Association generally, including information technology, financial reporting, and other cross-program costs in support of programs administered by the Secretary in this title, and other costs; $150,000,000 to the Secretary of Agriculture for the cost of guaranteed and insured loans and other obligations, including the cost of modifying such loans, under subsection (e)(1)(B); $50,000,000 to the Secretary of Agriculture for the costs of carrying out the program under paragraph
(3)and programs of the Rural Housing Service generally, including information technology and financial reporting in support of the Program administered by the Secretary of Agriculture in this title; and $300,000,000 to the Secretary of Treasury for the costs of carrying out the program under this section. The Secretary of Housing and Urban Development and the Secretary of Agriculture shall use the funds provided under subsections (a)(1), (a)(2), (a)(3), and (a)(4) to carry out the programs under subsections (a)(1) and (a)(3) to make covered mortgage loans. The Secretary of the Treasury shall use the funds provided under subsections (a)(5) and (b)(2) to— purchase, on behalf of the Secretary of Housing and Urban Development, securities that are secured by covered mortgage loans, and sell, manage, and exercise any rights received in connection with, any financial instruments or assets acquired pursuant to the authorities granted under this section, including, as appropriate, establishing and using vehicles to purchase, hold, and sell such financial instruments or assets; designate one or more banks, security brokers or dealers, asset managers, or investment advisers, as a financial agent of the Federal Government to perform duties related to authorities granted under this section; and use the services of the Department of Housing and Urban Development on a reimbursable basis, and the Secretary of Housing and Urban Development is authorized to provide services as requested by the Secretary of Treasury using all authorities vested in or delegated to the Department of Housing and Urban Development. Such portions of the appropriation to the Secretary of Housing and Urban Development shall be transferred by the Secretary of Housing and Urban Development to the Department of the Treasury from time-to-time in an amount equal to, as determined by the Secretary of the Treasury in consultation with the Secretary of Housing and Urban Development, the amount necessary for the purchase of securities under the Program during the period for which the funds are intended to be available. Revenues of and proceeds from the sale, exercise, or surrender of assets purchased or acquired under the Program under this section shall be available to the Secretary of the Treasury through September 30, 2033, for purposes of purchases under subsection (b)(1)(B)(i). The aggregate original principal obligation of all covered mortgage loans insured or guaranteed under subsection (e)(1)(A) of this section may not exceed $48,000,000,000, and under section (e)(1)(B) may not exceed $12,000,000,000. To carry out the purposes of this section, the Government National Mortgage Association may enter into new commitments to issue guarantees of securities based on or backed by mortgages insured or guaranteed under this section, not exceeding $60,000,000,000, and shall collect guaranty fees consistent with section 306(g)(1) of the National Housing Act ( 12 U.S.C. 1721(g)(1) ) that are paid at securitization. In this section: The term covered mortgage loan means, for purposes of the Program established by the Secretary of Housing and Urban Development, a mortgage loan that— is insured by the Federal Housing Administration pursuant to section 203(b) of the National Housing Act, subject to the eligibility criteria set forth in this subsection, and has a case number issued on or before December 31, 2031; is made for an original term of 20 years with a monthly mortgage payment of principal and interest that is not more than 110 percent and not less than 100 percent of the monthly payment of principal, interest, and periodic mortgage insurance premium associated with a newly originated 30-year mortgage loan with the same loan balance insured by the agency as determined by the Secretary; subject to subparagraph
(C)of this paragraph and notwithstanding section 203(c)(2) of the National Housing Act ( 12 U.S.C. 1709(c)(2) ), has a mortgage insurance premium of not more than 4 percent of the loan balance that is paid at closing, financed into the principal balance of the loan, paid through an annual premium, or a combination thereof; involves a rate of interest that is fixed over the term of the mortgage loan; and is secured by a single-family residence that is the principal residence of an eligible homebuyer. The term covered mortgage loan means, for purposes of the Program established by the Secretary of Agriculture, a loan guaranteed under section 502(h) of the Housing Act of 1949 ( 42 U.S.C. 1472(h) ) that— notwithstanding section 502(h)(7)(A) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(7)(A) ), is made for an original term of 20 years with a monthly mortgage payment of principal and interest that is not more than 110 percent and not less than 100 percent of the monthly payment of principal, interest, and loan guarantee fee associated with a newly originated 30-year mortgage loan with the same loan balance guaranteed by the agency as determined by the Secretary; and subject to subparagraph
(C)of this paragraph and notwithstanding section 502(h)(8)(A) of the Housing Act of 1949 ( 42 U.S.C. 1472(h)(8)(A) ), has a loan guarantee fee of not more than 4 percent of the principal obligation of the loan. The term eligible homebuyer means an individual who— for purposes of the Program established by the Secretary of Housing and Urban Development— has an annual household income that is less than or equal to— 120 percent of median income for the area, as determined by the Secretary of Housing and Urban Development for— the area in which the home to be acquired using such assistance is located; or the area in which the place of residence of the homebuyer is located; or if the homebuyer is acquiring an eligible home that is located in a high-cost area, 140 percent of the median income, as determined by the Secretary, for the area within which the eligible home to be acquired using assistance provided under this section is located; is a first-time homebuyer, as defined in paragraph
(4)of this subsection; and is a first-generation homebuyer as defined in paragraph
(3)of this subsection; for purposes of the Program established by the Secretary of Agriculture— meets the applicable requirements in section 502(h) of the Housing Act of 1949 ( 42 U.S.C. 1472(h) ); and is a first-time homebuyer as defined in paragraph
(4)of this subsection and a first-generation homebuyer as defined in paragraph
(3)of this subsection. The term first-generation homebuyer means a homebuyer that, as attested by the homebuyer, is— an individual— whose parents or legal guardians do not, or did not at the time of their death, to the best of the individual’s knowledge, have any present ownership interest in a residence in any State or ownership of chattel, excluding ownership of heir property; and whose spouse, or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, have any present ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether the individual is a co-borrower on the loan or not; or an individual who has at any time been placed in foster care or institutional care whose spouse or domestic partner has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any ownership interest in a residence in any State, excluding ownership of heir property or ownership of chattel, whether such individuals are co-borrowers on the loan or not. The term first-time homebuyer means a homebuyer as defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12704 ), except that for the purposes of this section the reference in such section 12704(14) to title II shall be considered to refer to this section, and except that ownership of heir property shall not be treated as owning a home for purposes of determining whether a borrower qualifies as a first-time homebuyer. The term heir property means residential property for which title passed by operation of law through intestacy and is held by two or more heirs as tenants in common. The term ownership interest means any ownership, excluding any interest in heir property, in— real estate in fee simple; a leasehold on real estate under a lease for not less than ninety-nine years which is renewable; or a fee interest in, or long-term leasehold interest in, real estate consisting of a one-family unit in a multifamily project, including a project in which the dwelling units are attached, or are manufactured housing units, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project. The term State means the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States. No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under clauses
(ii)and
(iii)of subsection (e)(2)(A) and clause
(ii)of subsection (e)(2)(B) and no State, eligible entity, or creditor shall be subject to liability based on the accuracy of such attestation. The Secretary of Housing and Urban Development, the Secretary of Agriculture, and the Secretary of Treasury shall have authority to issue such regulations, notices, or other guidance, forms, instructions, and publications to carry out the programs, projects, or activities authorized under this section to ensure that such programs, projects, or activities are completed in a timely and effective manner.
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