Minnesota First Time Home Buyer Savings Account

What is a first time home buyer savings account and what does it mean for first time home buyers in Minnesota? Find out everything there is to know about First Time Home Buyer Savings Accounts in Minnesota, and what this means for you moving forward. 

Saving for a down payment and being able to put the necessary funds down on a home is one of the biggest challenges first-time buyers in Minnesota face. But thanks to a recently passed law, the daunting task of saving for your first home just got a little easier, and that’s a pretty big deal.

Officially, the new piece of legislature now allows Minnesotans to setup a tax-deferred savings account in which the money saved goes directly towards the purchase of a home. In other words, the interest and dividends accumulated from the Minnesota First Time Home Buyer Savings Account can be claimed as a state tax deduction, which should only further incentivize home ownership even more.

Despite coming off the worst recession in over 70 years, home prices are once again on the rise, and coming up with a down payment is only getting more difficult. Other states have already adopted First Time Home Buyer Savings Account initiatives, and Minnesota following suit is just one more step towards making a full, long-term recovery.

Minnesota First Time Home Buyer Savings Account Info At-a-Glance

Take a closer look at everything you need to know about First Time Home Buyer Savings Accounts in Minnesota.

  • Minnesota First Time Home Buyer Savings Accounts can be established by individual or couples at their local bank or credit union.
  • Parents and grandparents can also open a First Time Home Buyer Savings Account for their children or grandchildren, and can also contribute to these accounts over time.
  • First Time Home Buying Savings Account holders can save up to $150,000 with interested and dividends, but maximum contributions for married joint account holders is set at $100,000, while individual account holders are capped at $50,000.
  • Annual contributions for a Minnesota First Time Home Buyer Savings Account are limited to $28,000 for couples and $14,000 for individuals.
  • All interest and dividends accumulated on First Time Home Buyer Savings Accounts can be claimed as a state income tax deduction.

Have First Time Home Buyer Info Sent Straight to Your Inbox - IT'S FREE!