Good news from the federal government for first time home buyers! And shockingly it came from a bi-partisan effort, with both Republican and Democrats coming together in order to help first time home buyers overcome hurdles and make home ownership a reality.
The First-Time Home Buyer Savings Account Act, sponsored by Colorado's own Representative, Mike Coffman, Rep. Sean Patrick Maloney (D-NY) and Rep. Barbara Comstock (R-VA), is designed to help consumers who are trying to buy their first home. H.R. 2802 will amend the federal tax code to create 529-style savings accounts for first time homebuyers. The goal is to mimic the model of the highly successful 529 plan model, which provides parents with college bound children a tax-advantaged program to save for college education. H.R. 2802 will seek to do the same thing but will allow consumers to apply their tax deferred savings towards buying a first home.
According to the Congress.gov website, here is the summary of this new, exciting program:
- provide for tax-preferred savings accounts for first-time homebuyers
- individuals make up to $14,000 per year in after-tax contributions to the account, subject to a $50,000 lifetime contribution limit, a $150,000 limit on the fair market value of the account, and adjustments for inflation after 2018
- distributions from the account that are used to pay the qualified principal residence purchase expenditures of the designated beneficiary are excluded from gross income.
The bill mirrors legislation that received bi-partisan support as it was signed into Colorado law in 2016 and is similar to state laws in Virginia and Montana. LRA wrote a blog regarding this legislation last year here.
Getting excited about finding your new home now? Check out listings that may fit your criteria and budge here. Or if you would like to see housing data for Boulder County, there are plenty of statistics to check out in such as "Days on Market", "Total Inventory" and "Newly Listed Homes". We track all these market statistics for Single Family Homes (SFH) for most of neighboring towns on a monthly basis, including Louisville, Erie, Lafayette and Superior. Check out Spring 2017 market summary here. At Louisville Realty Associates, we have the experience, energy and depth of knowledge to help you find your next home for the best price. You can reach me anytime at firstname.lastname@example.org.