September 29, 2026
Mr. Merkley introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
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.