January 2, 2019 | Alex Acuff
Thanks to a new law that goes into effect in 2019, Alabamians will be able to save for a down payment with the First-Time Homebuyer Savings Account Program, a tax-free savings account dedicated to the purchase of your first home. It also applies to those re-entering the housing market if you haven’t owned a home in the last 10 years. Individuals or couples can open one of these tax-free savings accounts at any local bank, credit union or other financial institution in Alabama. The principal deposits and earnings will be deductible on your state income taxes. Savings from the account can be used to pay for the down payment and/or closing costs for the purchase of a single-family dwelling.

Click here for more information on this new program​​​

Homeownership has been an essential element of the American Dream for decades and continues to be so today. The benefits of homeownership are many and far-reaching. Studies show that homeownership has a positive social impact in communities, such as heightened civic participation, increased educational achievement, lower crime rates, raising property values, and homeowners maintain and improve their properties relative to renters. Overall, higher rates of homeownership correspond to more stable neighborhoods and communities.

Financially, the housing sector is a huge part of our economy, accounting for a large percentage of total economic activity (15.6% in 2015). However, rising costs of housing and crippling student loan debt are impacting younger generations and their ability to achieve the American Dream of homeownershipSaving for a down payment and closing costs can be challenging. A First-Time Home Buyer Savings Account (FHSA) Program will provide an opportunity for residents to save and grow funds to apply towards the purchase of a home.



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