First Time Homebuyers Savings Account Could Make Homeownership Possible
May 25, 2018 – Wayne, Pennsylvania – A new Pennsylvania bill could bring home ownership within reach for more first-time buyers. The Bill, called “First Time Homebuyers Savings Account Act,” would allow eligible Pennsylvania residents to open special savings accounts and claim state tax deductions for savings toward home purchase expenses, including a down payment and closing costs.
First-time home buyers and people who have not owned or purchased a home within the three years leading up to the purchase would be eligible. Up to $50,000 could be contributed over a 10-year period with annual contributions limited to $5,000 for single taxpayers and $10,000 for joint taxpayers.
First introduced by co-sponsors Rep. Ryan Bizzarro (D-Erie) and Rep. Rosemary Brown (R-Monroe), HB 1981 was approved on April 11 in the House Urban Affairs Committee. The companion legislation, sponsored by Sens. Wayne Fontana (D-Allegheny) and Bob Mensch (R-Montgomery), is pending in the Senate.
The First Time Homebuyers Savings Account Act would benefit residents who enroll, but many other benefits are predicted. Some estimate that the positive impact on the Pennsylvania economy could be as high as $68 million. The National Association of Realtors® (NAR) estimates that $64,000 in secondary expenses is put into the economy when a typical home is sold. These expenses include moving costs and brokerage services.
The savings account will enable those who are struggling to save enough for a down payment, while paying off student loans and managing other normal costs. In addition, parents and grandparents can save for their children and grandchildren.
Main Line Realtor® Linda Walters of Sage Realty strongly approves of the bill. “I hope that this bill passes—for the benefit of our residents who are trying to get into their first homes, of course, but also for the benefits to our Main Line communities. First time homebuyers have a difficult enough time saving what they need to purchase a home, and right now we have a strong sellers’ market. Over the next few years, if this bill is approved, whatever the state of the market, residents who take advantage of this opportunity will be in a much better position to buy, and that helps the local real estate market as a whole.”
The National Association of Realtors® has estimated that 80% of Pennsylvania residents support the new bill and Pennsylvania is only one of several states considering this type of bill. Virginia, Maryland and Colorado are among the states that already have some type of program in place.
For more information about the Main Line Real Estate market, contact Sage Realty directly.
About Sage Realty
Sage Realty is a full service real estate company serving the Main Line area of Philadelphia. The company’s founder, Linda Walters, opened Sage initially to provide first time homebuyers, as well as repeat buyers, with a skilled and experienced advocate they could count on. Today, the agents of Sage’s team also provide top quality service to home sellers, and they are committed to helping each client achieve the best outcome. With the company’s strict “No dual agency” policy, clients never have to worry about conflicts of interest. For information or a consultation, contact the company at 610-687-4000 or visit the website: www.FindAHomeInPA.com.