This Act may be cited as the First Time Homebuyer Debt Reduction Act.

(a) In general Not later than 30 days after the enactment of this Act, the Director of the Federal Housing Finance Agency shall require the enterprises to classify a covered payment as a financial concession with respect to an interested party contribution in the sale of a home, subject to the limitation described in subsection (b). (b) Limitation A portion of a covered payment that is in excess of $25,000 shall be classified as a sales concession. (c) Definitions In this Act: (1) Enterprises The term enterprises means— (A) the Federal National Mortgage Association; and (B) the Federal Home Loan Mortgage Association. (2) Covered payment The term covered payment means a payment towards a student loan, as defined in Title IV of the Higher Education Act, by an interested party to the buyer of a home. (3) Home Newly constructed principal residence of the buyer of a home.