Missouri Passes Bill To Create the First-Time Homebuyer’s Savings Plan
Every homeowner has a story to tell about their first home.
The stories always seem to begin with a wave of emotions. Excitement turned into anxiety which turned into stress when you applied for a loan, or when you first heard what kind of down payment was needed or what the closing costs and fees were going to be once they were added to your initial payment due.
Or, if you’ve never owned a home, is one of the reasons because the financials are so daunting that you never thought you could have the wherewithal to make it happen?
Well, we are one step closer here in Missouri to making some of those worries go away.
The House recently passed a bill to create the First-Time Homebuyer’s Savings Account Act that would allow first-time homebuyers, or those re-entering the housing market, to save money, tax free, toward the purchase of a home.
The bill is now being considered in the Senate, and if passed, and signed by the Governor, could allow for the savings to begin as soon as the calendar flips to 2019.
If adopted, the Missouri First-Time Homebuyer Initiative will open the door for first-time homebuyers and will help more Missourians achieve the dream of homeownership.
The plan would function as a dedicated, tax-free savings account program that would allow Missourians to:
- Deposit up to $1,600 ($3,200 for couples) annually.
- Parents and grandparents can set up an account for their children or grandchildren and even contribute money to the account.
- Receive a state income tax deduction on the principal investment up to 50% of the maximum deposit.
- All interest accrued in the account will be tax-free, expediting the time to purchase a first home.
- Apply the savings and any earned interest toward the purchase or construction of a first home in Missouri, including closing costs, taxes and fees.
Missouri REALTORS® are supporting legislation that can make the Missouri First-Time Homebuyer Initiative a reality.
Your support today can make the difference for first-time homebuyers tomorrow.
And remember, this isn’t just a benefit to first-time home buyers. It’s a benefit to all of us, because home ownership helps improve neighborhoods, which in turn attracts businesses, which creates jobs and improves our local economy.
So, there’s a stake in this for all of us.You should contact your state Senator to support the Missouri First-Time Homebuyer Initiative to help the next generation of Missourians save for their first home.Click To Tweet
Which is why you should contact your state Senator to support the Missouri First-Time Homebuyer Initiative to help the next generation of Missourians save for their first home. It’s a new idea to encourage personal saving so that prospective homebuyers can overcome the financial barriers to owning a home.