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First-Time Home Buyer Savings Account
Did you know, creating a savings account to buy a home can help reduce your taxes?
Oregon’s First-Time Home Buyer Savings Account law allows residents to save money for first-time homeownership and may reduce your Oregon tax liability.
Any Oregon resident who hasn’t purchased or owned a single-family home, either individually or jointly, in the three years prior to the date of their planned purchase of a new home in Oregon.
What’s the benefit?
As an individual, you may deduct up to $5,000 from your Oregon taxable income for deposits and earnings in a First-Time Home Buyer Savings Account each year, for a maximum of 10 years. For those filing jointly, the deduction can be up to $10,000 per year.
What can you spend your First-time Home Buyer Savings Account on?
• Down payment
• Closing costs
• REALTOR® fees
• Appraisal costs
• Loan Origination fees
What are the requirements?
A First Time Home Buyer Savings Account can be opened anytime between January 1, 2019 through December 31, 2026. Money deposited in the First-time Home Buyer Sav- ings Account must be used to buy a single-family home within 10 years of initially opening the account. If funds are not used to purchase a home, a five percent penalty may be imposed, and you will be required to add back to your income any amounts previously deducted.
Where can you set up an account?
Any financial institution that offers First-time Home Buyers Savings Accounts in Oregon. Ask your financial institution if they participate.
PARTICIPATING BANKS/CREDIT UNIONS
Oregonians Credit Union – Serving Clackamas, Multnomah, Washington, Benton, Columbia, Crook, Deschutes, Jefferson, Lane, Linn, Marion, Polk and Yamhill counties.
First Federal Savings & Loan of McMinnville – Serving Yamhill county
Heritage Grove Credit Union– Serving Marion, Polk and Yamhill counties
Willamette Valley Bank – Serving all Oregon counties.
Consolidated Community Credit Union – Serving Multnomah, Clackamas and Washington counties
Pacific Northwest Federal Credit Union – Serving Clackamas, Columbia, Hood River, Multnomah, Washington and Yamhill counties
Oregon State Credit Union – Serving 24 Counties