Saving for Your First Home: The FHSA Program
Are you looking to buy your first home but struggling to save up enough for a down payment? If you’re a resident of Alabama, Colorado, Idaho, Minnesota, Mississippi, Montana, Oregon, or Virginia, you may have access to the FHSA (First Time Home Savings Account) program. This program allows you to contribute to a tax-free account, which can only be used for specific purposes related to your first home.
Here’s what you need to know about the FHSA program, specifically in Oregon:
- To qualify, you must be an Oregon resident who has not owned or purchased a residence in the three years prior to the date of the planned purchase.
- You must purchase a home in Oregon and are subject to a 5% penalty on funds withdrawn for non-qualifying purposes.
- Income limitations apply, with maximums of $104,000 for individuals and $149,000 for joint filers.
- The account can be opened between January 2019 and December 31st, 2026. You may save up to $5,000 as an individual, $10,000 as a joint account, or a total of $50,000 aggregated over ten years.
- Qualifying expenses include the down payment, title insurance and other closing costs, realtor commissions, appraisal and home inspection fees, and loan origination fees.
If you’re interested in the FHSA program, consider opening an account with one of the following banks or credit unions in Oregon that offer the program:
Consolidated Community Credit Union
Central Willamette Credit Union
Take advantage of this opportunity to save for your first home and achieve your dream of homeownership. And if you need help navigating the home buying process, don’t hesitate to reach out to Shawn Realty for an initial consultation.
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Other First Time Home Buyer Guide Videos
Other FHSA Sources from the reputable financial sites:
Lifehacker.com: First Time Home Buyer Savings Account: A Guide to Saving for Your First Home
Shawn Realty 