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Ohio REALTORS Back First-Time Home Buyer Savings Act

Sue Author - Sue Lusk-Gleich
READING TIME - Less than a minute read

First Time Homebuyer Savings Act

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Sue Sue@thecolumbusteam.com

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    On June 15, Ohio REALTOR Brian Whitta, from Findlay, testified in support of Bill 139 or the First-Time Home Buyer Savings Act. Introduced by Senators Teresa Gavarone and Bob Peterson, the bill is to create a savings account for potential Ohio homeowners.

    The bill was brought before the House Ways and Means Committee, where Whitta testified.

    “The dream of homeownership for first-time homebuyers has become a challenge in recent years and especially this past year, despite low interest rates,” Whitta told lawmakers. “One of the most significant challenges of homeownership is a down payment, as you can imagine.”

    Bill 139, however, would help support first-time homebuyers by allowing them to open a tax-deductible savings account for use toward a home purchase. According to Whitta, the measure is a top priority for more than 36,000 Ohio REALTORS. Industry groups such as the Ohio Chamber of Commerce, the Ohio Land Title Association, and the Ohio Bankers League also voiced support during the hearing.

    “Although this savings program will not reduce all barriers to homeownership, it is certainly a tool that will help hardworking Ohioans move closer to their goal,” Whitta said.

    If Ohio passes Bill 139, it will join states like Colorado, Montana, Virginia, Oregon, Iowa, New York, Minnesota, Mississippi, and others to offer First-Time Homebuyers Savings Accounts.

    Stay tuned for more updates from the Ohio Legislature!

    First-Time Home Buyer Savings Act

    Published May 2019

    On April 30th 2019, Senators Theresa Gavarone & Bob Peterson introduced Senate Bill 139 in the Ohio Senate to create a tax deductive savings account for Ohioans. This Ohio income Tax Deduction is designed to help empower Ohioans to prepare for homeownership in a meaningful way, with a tax-free savings account. With 8 in 10 non-homeowners reporting that affordability is a barrier to home ownership, this Bill may help ensure the American Dream of homeownership by creating a way for families to save for their loved ones. Details in the Bill include the following:

    Contributions:

    • Annual maximum contribution is $5K for single person and $10K for married people
    • Max 15-year cumulative contribution amount is $50K for single and $100K for married people
    • Contributions plus interest are tax deductible

    Management

    • Account is self-managed; banks have no liability or responsibility of management

    Penalties

    • Withdraw penalty is 10%

    Exceptions

    • Account holder death or disability
    • Bankruptcy
    • Monies transferred from 1FHBSA to another FHBSA
    • Financial Institution fees

    Ohio REALTORS® reports that transitioning from a renter to homeowner brings a marginal increase in consumer spending for goods and services with an estimated $97 million in economic activity in Ohio and $25K per transaction in construction-related economic activity in the state from newly constructed housing units. As REALTORS®, we believe home-ownership strengthens our communities, helps build generational wealth and also stimulates our local and state economies.

    Senate Bill 139 has been referred to the Ways and Means Committee with the first hearing to have taken place on May 21, 2019. Stay tuned for updates from The Ohio Legislature!

    Further Reading

  • Unveiling Ohio Homebuyers Plus: A Savings Plan for Ohioans

    #Buyer Info, #First Time Homebuyers,

    Announcing the official launch of the Ohio Homebuyers Plus Savings Plan—a game-changer designed to pave the way for tax-savvy homeownership in the Buckeye State.

  • Advice for First Time Home Buyers - couple reviewing finances

    Advice for First-Time Homebuyers

    #Buyer Info, #First Time Homebuyers,

    Buying your first house can be a rollercoaster of emotions. To guide you through this exciting process, check our expert advice for first-time homebuyers.

  • 4 Myths of buying vs renting

    4 Myths About Homeownership

    #Buyer Info, #First Time Homebuyers,

    According to recent studies, some 20.4 million renter households paid more than 30 percent of their incomes for housing in 2019. Economic fallout during the COVID-19 pandemic has resulted in a rental affordability crisis in the USA. Rising rents and limited housing have increase pressure on moderate-income households. People rent for a lot of reasons, […]

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