Saving for your first home just got easier. If you have never purchased a home before, or would like to set up an account for your children, the State of Colorado will allow you to set up a First-Time Homebuyers Savings Account. By filing one form with your taxes each year, you can open an account or designate an existing savings account as an FHSA. The maximum contribution on your end is $50,000.00, and any interest growth on the account will not be taxed by the Colorado Department of Revenue.
About the First-Time Homebuyers Savings Account
The FHSA funds can be used for your down payment and closing costs such as inspections and lenders fees. These savings may be applied toward the purchase of your first single-family home, condominium, co-op or mobile home. This nest egg cannot be used for commercial property or land purchases.
If you already own a house, this account can be gifted. If you want to give your children or grandchildren a head start on owning their first home, this would be a great way to plan for their future. Setting some funds aside now, will give them a head start on homeownership. Not all states offer this program, and Colorado is one of the pioneers promoting this opportunity.
Funds from the FHSA must be used for the purpose it was intended. If for any reason, the money is used for something outside of the purchase of a home, there will be a penalty and back taxes to pay. It’s understandable that life happens, so it would be in your best interest to have a separate emergency account, so all of your efforts don’t go to waste.
Are You Buying a Home in Grand Junction?
If you’re thinking about buying a home in Grand Junction, Fruita or any of the surrounding communities, we’d love to help you.
Call us at 970-765-4135 or get in touch with us online to tell us what you want from your next house. We’ll help you find it.
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