Alabama’s First Time Home Buyer Initiative may sound like a lot of jargon, but it’s about to have a real and important impact on state residents. In fact, for many, it can mean the difference between renting a small apartment and owning a lovely home. Whether you’re a first-time buyer, a real estate fan, or interested in state news, here’s how it works.
Who will Alabama’s First Time Home Buyer Initiative affect?
Alabama’s First Time Home Buyer Initiative will affect a wide array of people. Some of those who can benefit are:
- Young professionals;
- First-time buyers;
- Families; and
- People who can prove that have not owned a house of their own in the previous decade.
What does Alabama’s First Time Home Buyer Initiative do?
Now that we know who can benefit from this helpful initiative, it’s time to learn how they can benefit. This program is designed to make owning a home more feasible from a financial perspective. In this case, the key is in each individual’s savings account.
According to program guidelines, qualified potential homebuyers can open up a savings account specifically for their future homes. What makes that so special? Well, the account is totally tax-free! That means that when first-time buyers pay their taxes that year, the money spent from the account will be tax-deductible.
So, what exactly is the tax-deductible account allowed to cover? The answer: the closing costs or down payment for the house.
Where can I open an account using Alabama’s First Time Home Buyer Initiative?
Opening an account with the program is nice and easy. Simply visit your credit union or bank to get started. Just make sure that they’re in-state! Read more about being a first-time homebuyer in Alabama.
Summary
Alabama’s First Time Home Buyer Initiative will help people find their perfect homes—without spending more than they can afford. That makes it much easier for state residents to find a wonderful place to live. If you’re thinking of moving or selling, we can help. Fill out our contact form here. As for learning more about home-buying and real estate, visit our blog.