The most significant change in 2017 was the passage of the in December, which altered long-term homeownership benefits. Mortgage Interest Deduction (MID) :

: These remained a key federal-to-state incentive, allowing qualified buyers to claim a direct federal tax credit for a portion of their annual mortgage interest. Government-Backed Loan Programs

: Prior to the 2017 reform, interest on up to $100,000 of home equity debt was deductible regardless of how the funds were used.

These programs provided low-down-payment options that functioned as primary incentives for entry-level buyers in 2017.

In 2017, home buying incentives were defined by a mix of long-standing federal programs, state-level assistance, and a major shift in tax policy at the end of the year. Federal Mortgage Tax Incentives

Publication 936 (2025), Home Mortgage Interest Deduction - IRS

For loans taken out , homeowners could deduct interest on up to $1 million of mortgage debt. For loans after this date, the limit dropped to $750,000 .