American Promise Mortgage Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5592 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5592

 To establish a loan program for first-time homebuyers, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2026

  Mr. Merkley introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
 To establish a loan program for first-time homebuyers, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Promise Mortgage Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) First-time homebuyer.--The term ``first-time 
        homebuyer'' means an individual who has never owned a principal 
        residence.
            (2) Eligible family.--The term ``eligible family'' means 1 
        or 2 individuals.
            (3) Eligible home.--The term ``eligible home'' means a 
        principal residence acquired by an eligible family at a 
        purchase price, not including closing costs, that does not 
        exceed the median single-family purchase price for the area as 
        determined by the Secretary with such adjustments for 
        differences in structure, and for new and old housing as the 
        Secretary determines to be appropriate.
            (4) Eligible loan.--The term ``eligible loan'' means a 
        mortgage loan--
                    (A) with a fixed interest rate that is not more 
                than the rate that is sufficient to cover the cost, as 
                defined in section 502(5) of the Federal Credit Reform 
                Act (2 U.S.C. 661a(5)), of making the loan under this 
                section;
                    (B) with a minimum 3.5 percent down payment;
                    (C) with a 30-year term;
                    (D) that is secured by an eligible home; and
                    (E) that shall conform to the greatest extent 
                practicable with the definition of a qualified mortgage 
                under section 129C(b)(2)(A) of the Truth in Lending Act 
                (15 U.S.C. 1639c(b)(2)(A)).
            (5) Eligible mortgagor.--The term ``eligible mortgagor'' 
        means an individual seeking an eligible loan who, at the time 
        the eligible loan is executed--
                    (A) is a first-time homebuyer;
                    (B) is a holder of a Homeownership Promise Account;
                    (C) has completed a program of housing counseling 
                provided through a housing counseling agency approved 
                by the Secretary; and
                    (D) has a credit score of not less than 500.
            (6) Principal residence.--The term ``principal residence'' 
        means a dwelling that is--
                    (A) physically occupied by an eligible family on a 
                permanent basis; and
                    (B) the address of record for the eligible family 
                for Federal income tax reporting, voter registration, 
                or occupational licensing, if applicable.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 3. AMERICAN PROMISE MORTGAGE LOAN.

    (a) Establishment.--The Secretary may make eligible loans to 
eligible mortgagors to--
            (1) purchase a 1-family residence, including a 1-family 
        dwelling unit in a condominium project, to serve as a principal 
        residence of the mortgagor, as attested by the mortgagor;
            (2) purchase a principal residence of the mortgagor, as 
        attested by the mortgagor, which--
                    (A) is a manufactured home to be permanently 
                affixed to a lot that is owned by the mortgagor and 
                titled as real property; or
                    (B) is a manufactured home and a lot to which the 
                home will be permanently affixed that is titled as real 
                property; or
            (3) purchase a principal residence of the mortgagor, as 
        attested by the mortgagor, which--
                    (A) is a manufactured home located in nonprofit, 
                government, or resident-owned manufactured housing 
                community; and
                    (B) includes a lease term that exceeds the 
                manufactured house loan term or includes a perpetual 
                right to occupy the site.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.
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