The "First Home Affordability Act" proposes to amend the Internal Revenue Code of 1986 by establishing a new refundable tax credit for first-time homebuyers. This credit aims to make homeownership more accessible by providing financial assistance to eligible individuals purchasing a principal residence in the United States. The credit is generally equal to 10 percent of the home's purchase price , distributed over a five-year credit period. The maximum aggregate credit allowed for a single purchase is capped at $25,000 , with a $12,500 limit for married individuals filing separately. The credit amount is subject to phase-outs based on the taxpayer's modified adjusted gross income exceeding 150 percent of the area median income and if the home's purchase price exceeds 110 percent of the area median purchase price. To qualify as a first-time homebuyer, an individual (and their spouse, if applicable) must not have had an ownership interest in a residence during the three-year period preceding the purchase. A significant provision allows for an accelerated credit for teachers, childcare workers, and first responders , who can receive the full 10 percent of the purchase price in the year of the home's acquisition. The bill also introduces a unique option for taxpayers to elect to transfer their credit to their mortgage lender . In exchange, the lender must provide the taxpayer with an upfront payment equal to the credit amount, which is not considered taxable income for the taxpayer. To ensure responsible use of the credit, a recapture provision requires taxpayers to repay a portion of the credit if they dispose of the residence or it ceases to be their principal residence during the credit period. However, exceptions to this recapture rule exist for situations such as death, involuntary conversion, transfers between spouses, and certain service members or employment-related moves. The Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, is tasked with issuing necessary regulations and guidance to implement these provisions effectively.