More States OK First-Time Buyer Savings Accounts
June 1, 2017
Minnesota is the latest state to adopt a First-Time Home Buyers Savings Account, joining a growing list of states.
These accounts allow individuals and families to save for their first home by putting a percentage of their income, or a capped amount of funds, into an account that is free from state income taxes.
The Minnesota Governor signed legislation to create a First-Time Home Buyers Savings Account in the state into law this week. Minnesota now joins five other states that have similar accounts for first-time buyers: Colorado, Mississippi, Iowa, Missouri, and Oregon.
The National Association of REALTORS®’ Community and Political Affairs Division has been advocating for First-Time Home Buyers Savings Accounts, saying they could help thousands across the nation achieve homeownership. Since 2016, NAR officials have been assisting states with tools and resources to help lawmakers propose bills to get approvals for establishing these accounts.
Other states have been seeking to adopt First-Time Home Buyers Savings Accounts. Pennsylvania lawmakers reportedly plan to introduce a bill later in 2017. New York, Oklahoma, Maryland, Utah, and Louisiana have also shown interest in approving their own legislation on First-Time Home Buyer Savings Accounts.
—Melissa Dittmann Tracey, REALTOR® Magazine
Updated: August 13, 2020