Alabama First-Time Homebuyer Savings Account Program
Take the first step to home ownership.
You’re one step closer to finding your perfect home.
The first step to homeownership is saving your money. And now, if you’re a first-time home buyer in Alabama, you’re in luck. Thanks to a new State law known as the First-Time and Second-Chance Homebuyer Act, building your savings account just got easier.
With a MidSouth Bank First-Time Homebuyer Savings Account, Alabamians can create a monetary savings account for the down payment and/or closing costs for the purchase of a single-family dwelling. What’s more, the principal deposits to the account are tax deductible and there’s no state taxes on earnings.
Qualifications
A first time or second chance home buyer is an Alabama resident who has not owned or purchased any home, either individually or jointly, within ten years. Individuals who currently own a home or own a home which is rented will not qualify.
Account Benefits
- Deposits reduce your income subject to Alabama State income taxes.
- Interest earned on the account is not taxable on your Alabama tax return.
- You may deposit up to $50,000 in this account over a five-year period ($25,000 for individual taxpayers).
- Principal contributions can be up to $5,000 for individual filers and $10,000 for joint filers per year.
Find frequently asked questions here.
With a MidSouth Bank First-Time Homebuyer Savings Account, you’re one step closer to finding your perfect home. Please give us a call today if you have any questions or are ready to start saving. You’ll be in your new home before you know it!