Family Home Investment and Education Plan Act

Family Home Investment and Education Plan Act - Amends the Internal Revenue Code to make the tax on prohibited transactions inapplicable to a home equity participation arrangement. Describes such arrangement as one in which the eligible participant in an individual retirement plan directs the trustee of such plan to acquire an ownership interest in all or part of any dwelling unit which within a reasonable period of time (determined at the time the arrangement is executed) is to be used as the principal residence for a first-time homebuyer. Requires such ownership interest to be a fee interest which requires full repayment. Limits the amount invested to the balance in the plan before January 1, 1992. Describes the first-time homebuyer as an eligible participant or a qualified family member (child, parent, grandparent, or spouse) who had no present ownership interest in a principal residence during the 36-month period before the date of the arrangement.

Allows the use of amounts in an individual retirement plan (prior to January 1, 1992) to make loans to purchase a home for a first-time homebuyer or to pay qualified higher education expenses on behalf of an eligible participant or a qualified family member. Requires the repayment of first-time homebuyer loans within 15 years and of higher education loans within ten years.