First Time Homebuyer Savings Account

Saving for a downpayment just got easier
Owning your own home has been a cornerstone of the modern American Dream and remains the surest path to building wealth for American families. When you rent, your dollars go one way -- out. When you own, you'll see a growing profit when you're ready to sell. According to the Federal Reserve's Survey of Consumer Finances, the typical net worth of homeowners is close to $200,000, while a typical renters' net worth is under $5500.

First-Time Homebuyer Savings Account signed into law in Minnesota

Prompted by the Minnesota REALTORS and Housing First Minnesota, the Minnesota legislature this year adopted a new law authorizing the First-Time Homebuyer Savings Account. Start saving today and deduct 100% of your interest earned from your Minnesota taxes.

Details for the new law

  • Parents or grandparents can set up an account and receive a deduction from their own state taxes.
  • Individuals can deposit money annually into a FDIC-insured savings account.
  • Contributions to the account receive a state tax deduction on interest earned. Individuals can deposit up to $14,000 annually; married joint filers can deposit up to $28,000 per year.
  • The plan applies to first-time homebuyers and those re-entering the housing market if they have not owned a home within three years.
  • Effective for taxable years beginning after December 31, 2016.