The Greater Metropolitan Association of Realtors® (GMAR) is working to educate Metro Detroiters on a new program for first-home buyers in Michigan. The first-time homebuyer savings account allows Michiganders to save for their own or a family member’s initial down payment on a future home purchase.
GMAR has launched a dedicated web page to guide Michigan residents through opening their accounts so they can begin taking advantage of this opportunity immediately. A downloadable handout is available on site for people to take to their tax preparer who can advise their clients on how to take advantage of the tax savings when they file in April 2023. In a time of inflation when everyone is looking for ways to save, this program helps twofold: putting away savings with a tax-free account and being able to deduct the investment.
“The Greater Metropolitan Association of Realtors® is happy to promulgate the perks of the first-time homebuyer savings account program,” said Teri Spiro, 2022 President. “Realtors® are committed to enabling everyone to be a homeowner. The ability to benefit from saving for a first home was recently created in the State of Michigan, and we want to make sure every person sees how much they could benefit.”
Since the account grows tax-free, investors are able to deduct investments that are paid into it annually for 20 years, or until it reaches the limit of $50,000.
“In order to qualify for an account, there are two qualifications that must be met,” said Vickey Livernois, CEO. “First, the potential homebuyer must be a Michigan resident. Second, the candidate has not purchased or owned a single-family residence in three years. This includes joint ownership as well. Once eligible, candidates can begin the process of opening an account. For potential owners, the best course of action is to pick an account that best suits themselves. As long as the financial institution is authorized to do business in the state, a candidate is able to open up an account. Types of financial institutions can range anywhere from a local credit union to a national bank.”
GMAR is the largest association of its kind in the state with 11,500+ members in Metro Detroit and is educating their members on the program in addition to the general public.
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