- Opening a First Time Homebuyer Savings Account (FHSA) allows account holders to deduct most, and perhaps all, of their contributions to a FHSA from their state income tax and enjoy tax-free gains on their savings.
- The opportunity is open to any Michigan resident who has not individually or jointly owned or purchased a single-family residence in the past 3-years.
- Account holders can deduct FHSA contributions from their Michigan Income Tax for as long as 20 years. Annual contribution thresholds are up to $5,000 for a single tax return and $10,000 for a joint filing. After the $50,000 maximum account balance is reached, interest can continue to grow tax-free.
- Eligible homebuying costs that FHSA funds can cover include the down payment and allowable closing costs shown on a settlement statement or an executed sales agreement for the purchase of a new home in Michigan.
- Your new account can be started today at a Michigan institution such as a neighborhood bank or credit union, or even through a financial advisor.
- FHSAs can be opened for yourself.
Parents, grandparents, and guardians can designate the account for a qualified beneficiary, like a child or grandchild, to take advantage of in the future!
For more information, visit the Michigan Department of Treasury.
Call me when you are ready to look for your first home.
I highly recommend the book pictured below for any first-time home buyer. Pictured is the 2nd edition. First edition is available at some libraries.
Michigan’s First Time Home Buyer Savings Program
A Tax Free Program to Help Michiganders Save For Their First Home
Contac Me to Help You with Your Goal of Owning Your Own Home. It Can Be Done!
Marian Gregor, CRS
