Virginia REALTORS® Promote First-Time Homebuyer Accounts
The Virginia Association of REALTORS® is helping to make home ownership a reality for first-time home buyers.
In 2014, the REALTORS® association supported the enactment of a law that enabled first-time homebuyers to save up to $50,000 in a specially designated account for the purchase of a home. The savings account is not subject to Virginia taxes, and with interest the account can grow tax-free to a maximum of $150,000. A one-time deposit of $50,000 may fund the account or it may be funded over time with smaller deposits.
The first-time homebuyer savings account is a unique way to allow parents, grandparents and other relatives to help family members save for their first home.
“We see the impact every day on buyers who do not have the resources to come up with the cash required to close a transaction,” said Deborah A Baisden, president of the Virginia Association of REALTORS®. “These are buyers who, in many cases, may otherwise qualify for the home. The underlying reason we wanted to pass this bill was to begin to focus the discussion on the importance of saving for a home, making sure our next generation of buyers can attain that dream.”
The Virginia Department of Taxation has now developed and enacted regulations for the savings plans, which can be found on the department’s website.
“It has become a trademark of the Virginia Association of REALTORS® that we look for issues and support legislation that promotes homeownership and also protects property rights,” Baisden said. “We work tirelessly throughout the year to identify and craft legislation that not only affects our REALTORS®, but our consumers. Tens of thousands of Virginians benefit from our efforts. Though they may not realize it, we take that responsibility seriously and are proud of our accomplishments.”