According to the Virginia Association of REALTORS®, a new law took effect on July 1, 2014 that makes it easier for Virginians to save for their first homes. The Virginia Association of REALTORS®’ 2014 signature legislation, First-time Homebuyer Savings Plans HB331, helps Virginians prepare for homeownership, reminds them how important it is, and is designed to improve the long-term health of the housing market.
Virginians will now be able to invest up to $50,000 in financial institutions like credit unions and banks or directly in mutual funds, brokerage accounts, or almost any other financial vehicle and declare them first-time homebuyer savings plans. The gains or earnings on the investment are free of state taxes, and the funds can be used for down payments and closing costs on first home purchases in the commonwealth.
“The need for these plans has become clear. Issues such as tighter mortgage loan requirements and increasing student debt are making it more difficult for young adults to enter the world of homeownership,” said VAR President Bradley J. Boland. “We knew we needed to be proactive. We needed to help people not only understand the expense of buying a home, but prepare for it as well. This bill is one way we are supporting the housing market, and maybe smoothing some of the speed bumps on the road to homeownership.”
Whether it’s a grandparent opening an account for a newborn, a forward-thinking high school student, or a recent college grad looking to the future, first-time homebuyer savings plans will reinforce the idea that setting a little something aside today will make it easier to buy a home tomorrow.
“By supporting this plan, Virginia re-enforces the commitment we have to our younger citizens, our families, and the overall recovery of the housing market,” said Delegate Tag Greason, patron of the bill.
Are you interested in more information on these savings plans? Click here for FAQs on the First-Time Homebuyer Savings Plans.
Are you looking to start the home buying process? Email us at concierge@lizmoore.com, we'd love to help! Or, click below to download our free Home Buyer's Handbook.
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