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!