Unlocking Home Ownership for Mississippians
Coming up with a hefty down payment will no longer be a huge hurdle for people buying their first home in Mississippi.
That’s because buying a first home just got easier.
The Mississippi legislature recently passed a law creating First-time Homebuyers Savings Accounts, which allows individuals or couples to save the money they need in a tax-free savings account to go toward the purchase of a home.
No longer do you have to worry about coming up with the money necessary to cover the additional closing costs, taxes and fees associated with buying a home.
Now you can save the money you need for such an important life investment tax-free.
It’s an initiative to incentivize homeownership, which is the backbone of safe neighborhoods, healthy schools, a consistent labor force and stronger communities, especially here in Mississippi.
In a recovering housing market in the wake of the worst recession in 70 years, a variety of strategies are needed to support and encourage homeownership. Creating this savings account is a great first step.
Here are five things you need to know about the First-time Homebuyers Savings Account in Mississippi:
- Any Mississippian who has never purchased, owned or partially-owned a home in Mississippi or any other state is eligible. Parents and grandparents can open an account for their children or grandchildren and contribute to that account as well.
- Individuals or couples can establish a dedicated savings account at their local bank, credit union or financial institution licensed to do business in Mississippi for the purchase of a first home regardless of their income.
- There is no maximum for the amount that can be saved overall as long as one of the qualified account holders remains alive.
- Annual deductions are capped at $5,000 for married joint filers and $2,500 for all other filers. You can deposit more than that into the account, but any amount exceeding the aforementioned totals is not eligible for a tax deduction.
- All interest and dividends earned on this account can be claimed as an income tax deduction.
Visit FirstHomeMS.org or contact a Mississippi REALTOR® to learn more.