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.

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.

Repeals the tax exclusion of interest on all savers certificates, effective April 1, 1982.