Michigan First-Time Home Buyer Savings Account (“FHSA”)
Michiganders can now save for the first purchase of a home through a new dedicated savings vehicle! The Michigan First-Time Homeb Buyer Savings Account (“FHSA”) Program allows account holders to deduct most, if not all, of their contributions to an FHSA from their state income tax and enjoy tax-free gains on their savings.
- The opportunity is open to any Michigan resident who has not individually or jointly owned or purchased a single-family residence in the past 3-years.
- FHSAs can be opened for yourself, or parents, grandparents, and guardians can designate the account for a qualified beneficiary, like a child or grandchild, to take advantage of in the future!
- Account holders can deduct FHSA contributions from their Michigan Income Tax for as long as 20 years. Annual contribution thresholds are up to $5,000 for a single tax return and $10,000 for a joint filing. After the $50,000 maximum account balance is reached, interest can continue to grow tax-free.
- Eligible home buying costs that FHSA funds can cover include the down payment and allowable closing costs shown on a settlement statement or an executed sales agreement for the purchase of a new home in Michigan.
- Your new account can be started today at your neighborhood bank or credit union, or even through a financial advisor.