New bill signed into law hopes to help first time home buyers with finances - nbc25news.com
Michigan -- A new law in Michigan, is giving first time home buyers a more affordable way to save for a down payment.
The Michigan Senate Bill 0146, First Time Home Buyers’ Savings Program, was sponsored by Senator Ken Horne of Frankenmuth and was signed into law earlier this week.
Those who drafted the law, say the goal is to give younger generations a leg up in the real estate market and keep them in the state.
State of Michigan legislators worked together to help Michiganders have a chance to build a foundation here in the mitten state.
Rob Moen of Michigan Realtors, worked with the senator from Frankenmuth on this and is excited that Governor Whitmer signed off on it the first day it was on her desk.
“So, at Michigan realtor's we've been working on this for about 3 and a half years now. I think this is going to be a popular program for our younger generation” says Moen.
According to Moen, Michigan ranks in the top 10 of people leaving Michigan.
In fact, United Van Lines Annual National Movers Study ranks Michigan as sixth in the nation for outward migration.
Not only does this aim to retain young talent in the state, but the law hopes to combat the decrease in younger people buying homes.
Moen says “A lot of them are not buying houses right now for a couple reasons. One, the job market isn’t quite where it used to be and then the climate, I mean jeez were in the snow right now and a lot of people sort of like sunny weather. So once they get out of college, they can put this money to good use, help them plant roots here in Michigan and get them off on the right foot”
This bill can help put money away for their down payment and closing costs too.
Under the new law, first-time home buyers and family members can contribute and withdraw from the account tax free and claim up to five thousand dollars for single filers and ten thousand dollars for joint filers on their taxes, but the account balance cannot exceed fifty-thousand dollars.
Plus, the account accrues interest while money is in the account, just like a savings account would do.
“They'll be able to access those funds and use them for like a down payment towards a house which could really help make their offers more attractive with more money down than someone that might only have 3 or 5 percent to put down on the purchase of a home" Moen says.
He goes on to say "There's a lot of competition so if someone has an extra 50 grand to put down, it’s going to make their offer look a lot stronger then someone that is doing five percent down and that could help us get a lot more deals put together and get more families into homes”.
This new law is not just for first time home buyers.
If you haven't owned a home in at least the last three years, you are eligible as well.
You can find more information on the bill on Senator Horn's website.
source: https://nbc25news.com/news/local/new-bill-signed-into-law-this-week-hopes-to-help-first-time-home-buyers-with-finances
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.