The legislation also benefits for first-time buyers, senior citizens and veterans, The New York Times (NYSE:NYT) reported Thursday.

While earning restrictions apply, many first-time buyers purchasing their primary residence would be eligible for a federal tax credit of 10 percent of the purchase price up to $7,500.

The amount has to be returned in 15 installments, paid with federal tax bills, but the benefit amounts to an "interest free loan," the Times reported.

Homeowners who do not itemize taxes will be allowed to deduct their property taxes up to $500 -- $1,000 if married and filling jointly.

The bill caps origination fees for reverse-mortgage agreements at 2 percent for loans up to $200,000 and 1 percent for larger loans – generally, a benefit for senior citizens.

Some veterans would benefit from a provision forcing lenders to wait nine months, rather than the standard 90 days, before initiating their foreclosure proceedings.

Eligible homeowners falling behind would benefit from renegotiating loans to 30-year fixed-rate mortgages capped at 90 percent of the home's current value. But lenders are not mandated to participate, the Times reported.