First-Time Home Buyer Savings Account – What is It?

Calling all future first-time home buyers!

Have you heard of the savings account that can help you reach your goal for a down payment on a home? There’s one specifically designed for first-time home buyers – so if you haven’t heard of this handy financial account, then listen up!

A first-time home buyer savings account (FHSA) is tax-advantaged and incentivizes home buyers to save toward their future home. These funds can be applied, on a tax-advantaged basis, towards the down payment and closing costs of your first home.

Each state has their own rules and regulations on how the FHSA can be applied, so it’s important that you check with your local bank to see what’s available.

FHSA’s are either one of the two models below, depending on your state:

  • Larger contributions; limited tax benefits
  • Limited contributions; greater tax benefits

Qualifications also vary by state, but there are no age restrictions on a first-time home buyer savings account.

Wanting to know what your state offers for a first-time homebuyer? Check out Nerd Wallet’s list here.

For more real estate guides and news, stop by Alliance Title’s Blog.

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