There’s Good News for Alabamians Looking to Purchase Their First Home
Alabama has signed into law a new savings account program supporting first-time homebuyers. Known as the First-Time Homebuyer Savings Account Program, Alabamians can create a monetary savings
account for the down payment and/or closing costs for the purchase of a single-family dwelling. What’s more, the principal deposits and earnings from the account are tax deductible.
With the First-Time Homebuyer Savings Account Program, you’re one step closer to finding your perfect home!
Here are the details on Alabama’s latest program benefiting first-time homebuyers:
Who?
Alabama first-time homebuyers and those re-entering the housing market, if they have not owned a home within 10 years.
What?
A savings account that can be used towards the down payment and/or closing costs for the purchase of a single-family dwelling.
When?
You can open a First-Time Homebuyer Savings Account starting in 2019.
Where?
The account can be opened at any financial institution authorized to do business in Alabama, and only marketable securities or cash may be contributed.
How?
Talk to a trusted advisor, such as your local REALTOR®, to help you understand all the tax benefits associated with homeownership – and to help ensure you’re getting the most out of Alabama’s new
law, the First-Time Homebuyer Savings Account Program.
Why?
When you are ready to buy a home, you will have the savings you need. Plus, the principal deposits and earnings from the account are tax deductible. Total deductions from deposit and earnings can be up to $50,000. Principal contributions can be up to $5,000 for individual filers and $10,000 for joint filers.
The First-Time Homebuyer Savings Account Program could have a positive net economic impact on Alabama that would range from $2.4 million to $26.8 million annually in economic activity due
to increased home purchases.
To learn more about how you can unlock the keys to homeownership, visit the First-Time Homebuyer section of AlabamaRealtors.com.