If you’re a real estate investor or you plan to buy a home soon, you are likely watching headlines and news stories to see how economic shifts are going to impact your decisions. With the passing of the One Big Beautiful Bill Act, there are some things you’ll want to know to move forward with confidence in your investment.
This legislation locks in tax policies that directly impact homeowners, investors, and developers. And for mortgage borrowers, it delivers something that’s been in short supply lately: stability.
Here’s what you need to know, and why it matters to your financial future.
Mortgage Insurance is Now Permanently Tax Deductible
For years, the deductibility of mortgage insurance premiums (like PMI, FHA MIP, and VA funding fees) has been in legislative limbo. Each year it is extended, but with no guarantee. For buyers who are paying close attention, this number matters and can be a source of stress and uncertainty.
Thanks to the One Big Beautiful Bill Act, this deduction is now permanent. That’s especially helpful if you bought a home with less than 20% down or have an FHA, VA, or 3% down conventional loan.
You may be able to write off thousands of dollars in annual insurance costs, giving you a real tax break and softening your monthly payment burden. It’s an important tool for budgeting smarter and qualifying for more home.
The Mortgage Interest Deduction Cap Is Set, For Good
The $750,000 cap on mortgage interest deductions has been locked in permanently. That means you don’t have to worry about a future rollback or sunset clause.
When you’re in a higher-cost housing market, like most of our Southern California mortgage clients, or planning a move-up purchase, you can now plan confidently around your tax exposure. No more guessing games about how your deductions will change in a few years.
Slowly, But Surely, More Affordable Housing Is Coming
The Act expands the Low-Income Housing Tax Credit (LIHTC), one of the most important incentives for developers building affordable rental units. It takes time for a change like this to affect change that we feel, but it is still great news for the future of the housing market.
Even though it won’t impact housing inventory overnight, over time this could lead to more entry-level and affordable homes hitting the market. We see this potentially easing pressure on prices and opening doors for more first-time buyers, as well as making real estate investment properties more accessible.
Get Serious About Local Down Payment Assistance
The bill offers no new federal down payment programs, and that puts the spotlight back on state and local initiatives.
As a local mortgage expert, I stay on top of every viable assistance program in our area, from grants to forgivable second mortgages. If you or someone you know is short on cash for a down payment, let’s talk options. There’s likely help available.
Tax Advantages Are Here to Stay for Real Estate Investors
This legislation is great news for you if you’re planning to invest in real estate. The Act gives real estate investors the certainty they’ve needed:
- Qualified Business Income (QBI) deduction stays intact
- 1031 exchanges remain untouched
- Mortgage interest deductibility for rental properties is secure
Whether you’re buying, selling, or refinancing, you can plan your strategy with confidence. Stable policy means it may be time to expand your portfolio, even in a high-rate market, because a tax-smart strategy is now easier to execute with fewer moving pieces.
In a time when markets and rates seem unpredictable, the One Big Beautiful Bill Act delivers one powerful thing: tax clarity. Whether you’re a first-time homebuyer, a seasoned investor, or a real estate agent advising clients, understanding these tax provisions gives you an edge.
Whether you want to apply for a mortgage today or just connect with a local mortgage expert, we’re here to help. Contact us any time!