A bill to amend the Internal Revenue Code of 1954 to exclude from gross income certain interest received or accrued on a mortgage loan made after February 28, 1982, and before January 1, 1984, a first-time home buyer and to provide a credit against income tax for first-time home buyers for the purchase of a home during such period.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow first-time home buyers a nonrefundable income tax credit for nine percent of the purchase price of a principal residence, up to $5,400. Requires a recapture of such credit if the taxpayer disposes of the property within three years of the purchase. Allows a three-year carryback of such credit. Allows mortgage lenders a nonrefundable income tax credit equal to nine percent of the principal of a loan made to first-time home buyers during the period from March 1 to December 31, 1982. Limits such credit to $5,400. Requires that the credit be used to decrease the effective rate of interest on the mortgage by three points during a three-year period. Allows a three-year carryback of such credit. Revises requirements for the exclusion of interest on mortgage subsidy bonds. Revises the arbitrage requirements to increase the amount by which interest rates on tax-exempt mortgage subsidy bonds may exceed the interest rates on mortgages financed with such bonds. Increases the amount by which the acquisition cost of a residence financed with such bonds may exceed the average area purchase price. Revises prior residency requirements for mortgagors. Repeal…