This Act may be cited as the First-Time Homebuyer Affordability Act.

(a) In general Section 146(g) of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (1) through (6) as paragraphs (2) through (7), respectively, and by inserting before paragraph (2) the following new paragraph: (1) any qualified mortgage bond,. (b) Conforming amendment Section 146(g) of such Code, as amended by subsection (a), is amended by striking Paragraphs (4) and (5) in the last sentence and inserting Paragraphs (5) and (6). (c) Effective date The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.