PRIA Logo™
119-s-5592119th CongressWALLET

American Promise Mortgage Act

Sponsored By: Senator Merkley, Jeff [D-OR]

Introduced

Summary

A federal loan program for first-time homebuyers would create a HUD-run mortgage option designed to help new buyers acquire a principal residence with affordable, fixed-rate loans. The bill defines who qualifies, what homes qualify, and lets HUD fund and run the program as needed.

Show full summary
  • Families and first-time buyers: Eligible borrowers could get mortgages with a minimum 3.5% down payment and long, fixed amortization designed for affordability, including a 30-year term. These loans aim to lower upfront barriers to buying a first home.
  • Borrower requirements: To qualify an individual must be a first-time homebuyer, hold a Homeownership Promise Account, complete HUD-approved housing counseling, and meet a minimum credit score of 500. These rules shape who the program serves.
  • Manufactured-home residents: The program would allow financing for permanently affixed manufactured homes and for homes in nonprofit, government, or resident-owned manufactured housing communities with long-term occupancy rights.
  • Program design and limits: The HUD Secretary would set area median purchase price limits, adjust for housing types, align loans with qualified mortgage standards, and receive appropriations as necessary to implement the program.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

New mortgage program for first-time buyers

If enacted, this bill would let qualifying first-time buyers get new American Promise mortgage loans through HUD. You would need to be a first-time homebuyer, hold a Homeownership Promise Account, complete HUD-approved housing counseling, and have a credit score of at least 500 when the loan is executed. The loan would be for your principal residence and the purchase price (excluding closing costs) could not exceed the area median single-family purchase price set by the Secretary, with allowed adjustments for housing type and age. Eligible homes would include one-family houses (including condo units) and certain manufactured homes that are permanently affixed, titled as real property, or sited in qualifying manufactured-housing communities. Loans would have a fixed interest rate no higher than the rate needed to cover the federal credit cost of making the loan, require at least a 3.5% down payment, and be amortized over a 30-year term; they must conform to qualified-mortgage standards to the greatest practicable extent. The bill would authorize such sums as may be necessary to run the program but does not set a dollar appropriation in the text.

Sponsors & CoSponsors

Sponsor

Merkley, Jeff [D-OR]

OR • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation