Great news for Mississippians saving to buy their first home! Governor Phil Byrant signed HB 1601 into law in 2017 to help lead the way to home ownership for Mississippians. The law establishes a First-Time Homebuyer Savings Account, allowing Mississippians to create monetary savings accounts for down payments or other home purchase related expenses. Members Exchange will begin offering these accounts as of January 1, 2018.
Click here to view a FAQ sheet.
Additional information can be found here: FirstHomeMS.org
The Infographic below gives information about the program, or scroll down for a text version.
There’s good news for Mississippians looking to purchase their first home.
The Magnolia State has signed into law a new savings account program supporting first-time homebuyers. Known as the First-Time Homebuyer Savings Account Act, Mississippi is taking proactive measures to help state residents realize the dream of home ownership.
With the First-Time Homebuyer Savings Account, you’re one step closer to finding your perfect home! Here are the details on Mississippi’s latest program benefiting first-time homebuyers:
Who: Mississippians who haven’t purchased, owned or partially owned a home in Mississippi or any other state.
What: A savings account for first-time homebuyers that offers tax advantages for individuals up to $2,500 a year and up to $5,000 a year for couples.
When: You can open a First-Time Homebuyer Savings Account and start saving today. You can start taking a tax deduction beginning in the 2018 tax year.
Where: You can create a First-Time Homebuyer Savings Account at any bank, credit union or other financial institution licensed to do business in Mississippi. It can be a cash deposit account or money market account.
Savings from a First-Time Homebuyer Account can be used for:
-Down Payments -Credit Report Fees
-Loan Origination Charges -Closing Costs
-Appraisal Fees -And more!
When the First-Time Homebuyer Savings Account is paired with a low down payment loan, the average Mississippi can afford to buy a home in less than 18 months.
How: Talk to a trusted advisor, such as your local REALTOR®, to help you understand all the tax benefits associated with homeownership – and to help ensure you’re getting the most out of Mississippi’s new law, the First-Time Homebuyer Savings Account Act.
Why: When you are ready to buy a home, you will have the savings you need. Plus, money deposited into the account is deductible from state income, which lowers your tax bill. Interest earned on the deposits is also free from state income tax.
With these First-Time Homebuyer Savings Accounts, the American dream is within reach for more Mississippians.” -Governor Phil Byrant
To learn more about the First-Time Homebuyer Savings Account, visit: FirstHomeMS.org.
Infographic information provided by Mississippi REALTORS®.