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.
- 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.
- 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.
- 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!