First-time Homeowners Opportunity Act

First-Time Homeowners Opportunity Act - Amends the National Housing Act to direct the Secretary of Housing and Urban Development to enter into ten-year contracts to make periodic assistance payments on behalf of homeowners to mortgagees or other lenders holding mortgages. Permits payments to be made only on behalf of a homeowner who satifies certain creditworthiness requirements and who: (1) has not owned a dwelling within the preceding three years; and (2) has a family income not exceeding 130 percent of the area median income. Authorizes the Secretary to make assistance payments to a lender only while the homeowner occupies the property secured by the mortgage unless the mortgage has been assigned to the Secretary. Limits the mortgage assistance payments to an amount not exceeding the lesser of: (1) the balance of the monthly payment due under the mortgage after applying a minimum 30 per centum of the mortgagor's income; or (2) the difference between the amount of the monthly payment which would be required if the mortgage were a level payment mortgage bearing the maximum interest rate applicable to federally insured mortgages and the monthly payment the mortgagor would pay if the mortgage were bearing nine and one-half per cent interest.

Authorizes the Secretary to insure a mortgage secured by a mortgagor who qualifies for such assistance. Lists the eligibility requirements for such insurance.

Directs the Secretary to insure, to the extent practicable, mortgages secured by single family residences that contribute to land and energy conservation.

Directs the Secretary to develop a system to allocate assistance among the various regions of the country.

Provides, upon the disposition by the homeowner of any property assisted pursuant to this Act, for the recapture of an amount equal to the lesser of: (1) the amount of assistance received; or (2) at least 50 percent of the net appreciation of the property. Creates a fund into which recaptured amounts shall be deposited. Prohibits payments on behalf of any mortgagor from exceeding ten years unless the mortgagor is unable to assume full mortgage payments. Requires the Secretary, in such a case, to continue assistance by utilizing the fund.