The First-Time Homebuyer Tax Credit Act of 2025 is designed to assist individuals in purchasing their first home by offering a refundable tax credit. This initiative aims to alleviate the financial burden of down payments, making homeownership more attainable, especially for those who may face economic challenges. The act provides a tax credit equal to 10 percent of the purchase price of a principal residence, capped at 5,000 for most buyers, with a reduced limit of $7,500 for married individuals filing separately.