What started off many years ago as an encouragement from government to save for retirement with IRAs, eventually gave way to other legislation that encouraged saving for health care and education. Now, with legislation enacted this past year by the Idaho State Legislature, people can now save for their first homes!
These accounts can be applied to down payments and other eligible costs associated with closing on a first home, including appraisals and other closing costs.
This program is open to any tax-paying Idaho resident or their Idaho spouse who hasn’t previously owned a home in Idaho or any other U.S. state and allows individual tax-filers to save up to $15,000 per year (joint-filers can save up to $30,000 per year), with the amount deducted from Idaho taxable income.
With the cost of owning a home continuing to increase at a rapid rate, any little bit helps so, if you’re just starting out in life, start saving for that first home today! An account can be opened at several banks and credit unions doing business in Idaho so check with your financial institution today about further details. Then, when you’ve saved up for that first down payment (an amount less than you may think), give me a call and let’s go find that first home!
Information comes from the Idaho Real Estate Commission, January 2021.