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First Home OLD

What is a First-Time Homebuyer Savings Act?

 

BUYING A FIRST HOME JUST GOT EASIER ...

A First-Time Homebuyer Savings Act (FHSA) created through Senate Bill 24 would allow any Ohioan to open a savings account that would be used only for purchasing a new home. The money saved in the FHSA may be used as a deduction on an Ohioan’s state income tax. FHSAs are a great way for Ohioans to start saving early for the costs of buying a home. Similar programs exist in Alabama, Colorado, Iowa, Minnesota, Mississippi, Missouri, Montana, New York, Oklahoma, Oregon and Virginia and several other states have legislation introduced to create similar programs.

These accounts are simple and easy to set up. An account can be opened at any financial institution in Ohio. The account owners must designate a qualified beneficiary with the Ohio Department of Taxation. A qualified beneficiary would be a first-time homebuyer who has not owned or purchased, either individually or jointly, a single-family residence in the past three years.
 

Why Support The First-Time Homebuyers Savings Act Program?

  • Low wages and college debt make it hard to save money for a down payment. The First-Time Homebuyers Savings Act Program can make it easier for people to buy their first house by allowing individuals or couples to put money in a savings account for the purchase of a new home.
  • A First-Time Homebuyers Savings Act Program allows Ohioans to focus on smart saving while receiving a tax benefit to achieve the American Dream.
  • Homeownership provides long-term stability, generates tax revenue, builds generational wealth and strengthens communities.
  • Read: Ohio REALTORS renew push for First-Time Homebuyer Saving Act (Ohio REALTORS Buzz | 1.28.21)
 

How It Works:

  • Ohio taxpayers can save up to $50,000 (single) / $100,000 (joint) over 15 years toward the costs associated with purchasing a new home. In addition, the account contributions and interest earned can be deducted from their state income tax liability.
  • Anyone can contribute to the account and parents and grandparents can open accounts to benefit their children and grandchildren.
  • Money removed from the account for non-approved expenses will be taxed with a penalty.

 

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