A bill to amend the Internal Revenue Code of 1954 to clarify certain requirements which apply to certain mortgage subsidy bonds, and to provide tax credit for first time home buyers for the purchase of a home.

Amends the Internal Revenue Code to revise requirements for the tax 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 residency requirements for mortgagors.

Allows 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. Limits such credit to the purchases of a residence between March 26 and December 31, 1982.