Thanks to the effort of Missouri REALTORS®, first-time
homebuyers in Missouri have a new tool to help them purchase their first home.
Called “Missouri First Home,” these First-Time Homebuyer Savings accounts were
approved by the legislature and signed by the Governor in 2018.
Sam Licklider, Chief lobbyist for Missouri REALTORS®, said
these accounts will help young people find ways to save up and handle one of
the most difficult hurdles for a first-time homebuyer.
“One of the biggest problems we’ve seen in buying a house is
coming up with a down payment,” Licklider said. “Young people coming out of
college typically have $30,000 to $80,000 in student debt. Lots of times they
get a great job, but they have debt and they don’t have any savings.”
The plan would function as a dedicated, tax-free savings
account program that would allow Missourians to:
- Deposit up to $1,600 ($3,200 for couples) annually.
- Have parents and grandparents set up accounts for their
children or grandchildren and even contribute money to the account. - Receive a state income tax deduction on the principal
investment up to 50% of the maximum deposit. - Accrue tax-free interest in the account, expediting the time
to purchase a first home. - Apply the savings and any earned interest toward the
purchase or construction of a first home in Missouri, including closing costs,
taxes and fees.
The First-Time Homebuyer Savings Account bill, introduced by
Representative Becky Ruth and Senator Caleb Rowden, was overwhelmingly approved
by the Missouri Legislature and signed by the Governor on July 13.
Senator Rowden praised the additional benefits the program
will bring to Missouri, stating “I think there’s value up and down the board
and it will provide benefit to the communities, and a benefit to the economy
that far outweighs what is a relatively-speaking pretty small fiscal impact to
the state.”
For more information on this new program, including
infographics that can be shared with clients, go to www.missourifirsthome.com.
