Establishes tax-advantaged down payment savings accounts for first-time homebuyers.

The First Home Savings Opportunity Act of 2025 amends the Internal Revenue Code to create down payment savings accounts. These accounts allow first-time homebuyers to contribute up to $10,000 annually, with a deduction for contributions. Funds withdrawn for qualified down payment expenses are tax-free. Contributions exceeding the limit or used for non-qualified expenses incur a 20% tax. The accounts are subject to inflation adjustments and phase-out based on income. The accounts must be held by a bank or a trustee meeting specific criteria.

Establishes tax-advantaged down payment savings accounts for first-time homebuyers.

The First Home Savings Opportunity Act of 2025 amends the Internal Revenue Code to create down payment savings accounts. These accounts allow first-time homebuyers to contribute up to $10,000 annually, with a deduction for contributions. Funds withdrawn for qualified down payment expenses are tax-free. Contributions exceeding the limit or used for non-qualified expenses incur a 20% tax. The accounts are subject to inflation adjustments and phase-out based on income. The accounts must be held by a bank or a trustee meeting specific criteria.