Open a First-Time Homebuyer Savings Account Today

couple looking at documents with a loan officer

Are you, a family member, or a client looking to buy a home in the next 2-10 years? Now is the perfect time to invest towards purchasing a house with a First-Time Homebuyer Savings Account!

For the first time ever, Michigan residents now have a new tool to help realize the dream of homeownership. Through a new dedicated tax-free savings account, Michiganders can now save for the first purchase of a home.

The Michigan First-Time Homebuyer Savings Account (FHSA) is a program geared toward saving for a first-time home purchase in Michigan. Account holders can deduct most, if not all, of their contributions to an FHSA from their state income tax and tax-free gains on their qualified investments. The First-Time Homebuyer Savings Account can be opened for yourself but also on behalf of a qualified beneficiary like a child, grandchild, niece, nephew, and more!

There are three simple steps to opening up a First-Time Homebuyer Savings Account and begin investing for a first home purchase.

  1. QUALIFY AS A FIRST-TIME HOMEBUYER
    To qualify for an account, the account holder must be a Michigan resident. Secondly, the account holder has not individually or jointly owned or purchased a single-family residence in the last three years.
  2. DECIDE WHICH ACCOUNT WORKS BEST
    Pick the account that meets your needs. Whether a traditional savings or brokerage account at a bank, credit union, or other financial institution, all will work for a First-Time Homebuyer Savings Account.
  3. INVEST IN THE NEW ACCOUNT
    Begin investing immediately! Deduct investments into the FHSA annually for 20 years, or up to $50,000. $5,000 per year for individuals or $10,000 per year for joint filers. Watch the account grow tax-free when used to purchase the first home in Michigan!

Call or Visit Any Financial Institution and Open a First-Time Homebuyer Savings Account Today!

  • To open a first-time homebuyer savings account, an account holder merely needs to create a new account with a financial institution authorized to do business in Michigan. An individual may establish multiple first-time homebuyer savings accounts but cannot designate the same qualified beneficiary on more than one account. An individual may, however, be designated as the qualified beneficiary on more than one first-time home buyer savings account.

    First-time homebuyer savings accounts may only be used for first-time homebuyer program purposes. The acknowledgement of the account as a first-time homebuyer savings account is made upon the designation as such with the filing of the account holder’s income tax return.

    For more information or questions, please visit the Michigan Department of Treasury website and view the Notice via the button.

    Learn More

  • Know someone that could benefit from a Michigan First-Time Homebuyer Savings Account? Want information to bring to your financial institution when setting up a First-Time Homebuyer Savings Account?

    GMAR has prepared this Michigan First-Time Homebuyer Savings account printout to make the process of sharing, downloading, or printing information about the First-Time Homebuyers initiative easier.

    Download the First-Time Homebuyer Savings Account printout by clicking the download button to the right.

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