New Program Would Help Pennsylvanians Save For A Home

The Pennsylvania Association of Realtors® is working with the state legislature to create a First-Time Homebuyers Savings Account Program in Pennsylvania. More than 80 percent of Pennsylvanians believe that buying a home is a good financial decision. But many first-time homebuyers face difficult obstacles in achieving the American dream of homeownership.

House Bill 1981 was introduced by Reps. Ryan Bizzarro (D-Erie) and Rosemary Brown (R-Monroe). Companion legislation, Senate Bill 1066, was sponsored by Sens. Wayne Fontana (D-Allegheny) and Bob Mensch (R-Montgomery) and introduced in the Senate. PAR is encouraging consumers to contact their legislators and ask them to support this legislation.

The First-Time Homebuyers Savings Account Program would create an incentive for Pennsylvanians to save money toward the purchase of a home and the money saved would qualify as a tax deduction on their state income tax return. Parents and grandparents would be eligible to save for children and grandchildren as well.

Lower wages, higher rents and crushing college debt have made it difficult for young people to save toward the purchase of a home. Research conducted for PAR showed that 56 percent of Pennsylvanians identified college student loans as an obstacle to homeownership. And a recent study by LendEDU ranked Pennsylvania as having the highest average college loan debt per borrower at $35,185.

“Our research also shows that a First-Time Homebuyers Savings Account Program could result in an increase of home purchases of up to 4,000 annually in Pennsylvania,” said Todd Umbenhauer, president of the Pennsylvania Association of Realtors®. “The increase in the number of home purchases would have an overall positive impact on Pennsylvania’s economy, spurring additional economic activity, job creation and earnings for households, according to research conducted by the Anderson Economic Group.”

To contact your legislator and learn more about the proposed Pennsylvania First-Time Homebuyers Savings Account Program, visit FirstHomePA.com.