The "First-Time Homebuyer Tax Credit Act of 2025" amends the Internal Revenue Code to introduce a new refundable tax credit for eligible first-time homebuyers. This credit amounts to 10 percent of the purchase price of a principal residence in the United States, with a maximum credit of $15,000 . To qualify as a first-time homebuyer, an individual (and their spouse, if married) must not have had a present ownership interest in any residence during the three-year period preceding the purchase and must not have previously claimed this credit. Additionally, the taxpayer must be at least 18 years old at the time of purchase. The credit is subject to several limitations, including phase-outs based on income and the residence's purchase price. The credit amount is reduced for taxpayers whose modified adjusted gross income exceeds 150 percent of the applicable area median income. Similarly, the credit is reduced if the purchase price of the residence exceeds 110 percent of the area median purchase price. The dollar limitations for the credit will be adjusted for inflation in years after 2025. A "purchase" is defined as an acquisition not from a related person, financed through a federally backed mortgage loan, and not acquired through certain non-purchase methods like inheritance. A significant provision is the recapture of the credit : if the home is sold or ceases to be the principal residence within four years of purchase, a portion of the credit (25% per remaining year) must be repaid. Exceptions to recapture include the death of the taxpayer, involuntary conversion, transfers between spouses, and dispositions due to qualified official extended duty service or employment-related moves. A unique feature allows taxpayers to elect to transfer the credit to their mortgage lender . If this election is made, the lender must be registered with the Secretary, disclose the credit's value, and provide the full credit amount to the taxpayer at the time of purchase, either in cash or as a down payment. The Secretary is directed to establish an advance payment program for eligible lenders and can revoke a lender's registration for non-compliance. Payments received by the taxpayer from the lender under this provision are not considered gross income. Taxpayers may elect to treat a principal residence purchased after December 31, 2023, as if it were purchased on December 31 of the preceding calendar year for credit purposes. The bill also specifies that certain errors related to claiming this credit can be treated as mathematical or clerical errors by the IRS. These amendments apply to principal residences purchased after the date of the Act's enactment.