Buying your first home in Mississippi is now a whole lot easier
The Mississippi legislature recently passed the First-Time Homebuyer Savings Account Act, which allows you to save the money you need in a tax-advantaged savings account, to go toward the purchase of a home.
It’s an investment that comes with a sense of stability and a feeling of belonging. Because when you buy a home, you are really investing in yourself. In your family. In your future.
Now, when you are ready to buy a single-family home, you will have the money saved to help make the purchase. Additionally, money deposited into this account is deductible from your state income, which lowers your tax bill.
How does it work? Well here are the important things you need to know:
- Any Mississippian who has never purchased, owned or part-owned a home in any state is eligible for this account. Parents and grandparents can open and contribute to an account for their children or grandchildren.
- You can set up an account at your licensed local bank or credit union and there is no limit on how much you can save toward that first home purchase. It can also be a cash deposit account or a money market account.
- Annual contributions that are eligible for tax deductions are capped at $5,000 for married, joint filers and $2,500 for all other filers. But you can save more than that annually if you choose, these figures are just caps for your tax deductions.
- Account interest and dividends can also be claimed as an income tax deduction.
You can open the account today and take the tax deduction when you file for the 2018 tax year. As a reminder, you can keep the account open for as long as you wish as long as the account holder remains a qualified first-time homebuyer.
And while most people will use these savings to assist with their down payment or their closing costs, it’s not limited to those two portions of a property sale. Account holders can use the savings for loan origination charges, appraisal fees, credit report fees, flood certifications, title charges or deed charges.
Most homes are eligible as well. All newly-constructed homes, existing homes, manufactured homes, modular homes, mobile homes, condominium units or cooperatives are eligible.
Over the years, your new home can gain value and gain equity while you create memories.
So, if you’d like to invest in yourself, ask a licensed REALTOR® or financial institution about the First-Time Homebuyers savings account, or visit FirstHomeMS.org.