If this is like the program we have in California, the government provides 25,000 towards the down payment and when the house is sold the government gets paid back before the homeowner gets any money from the sale.
So there’s the hook. So will the recipient get a 10-99 for taxes. If so, you will owe about $3,000 on that “free money”
I can’t see the feds giving money and not expecting a kick back.
So the government in effect is loaning the first time homebuyer $25,000 and is that a tax-free loan