Alabama First-Time Homebuyers Savings Program
Becoming a homeowner is a big step with big rewards but saving up a down payment can be a challenge for many first time home buyers.
Thanks to a law that went into effect this year, Alabamians can now save for a down payment with the First-Time Homebuyers Savings Account Program, a tax-free savings account dedicated to the purchase of your first home. It also applies to those re-entering the housing market who haven't owned a home in the last 10 years.
Individuals or couples can open one of these tax-free savings accounts at any local bank, credit union or other financial institution in Alabama. The principal deposits and earnings may be deductible on state income taxes. Savings from the account can be used to pay for the down payment and/or closing costs for the purchase of a single-family dwelling.
Many home buyers believe they'll need to put 20% down to purchase a home. This isn't necessarily true. In many cases the down payment can be lower than that.
If you want to own a home, opening a tax-free savings account through the First-Time Homebuyer Savings Account Program may be an important first step in making your dream a reality.
To learn more about this program, visit: https://www.alabamarealtors.com/consumer/first-time-homebuyer
Posted by Karen Rice, Keller William Realty Madison 434-282-7936
All information deemed reliable but not guaranteed.