First Time Home Buyer Savings Program
may help reduce your taxes
Idaho’s First-time Home Buyer Savings Account law allows residents to save money for first-time homeownership & may reduce your Idaho tax liability.
Who is eligible?
Any Idaho resident who has filed an income tax return in Idaho for the most recent taxable year, and who does not own, either individually or jointly, a single-family or multifamily residence and who has never owned or purchased, either individually or jointly, a single-family residence in any location.
What’s the benefit?
Idaho residents who set up a First-Time Home Buyer Savings Account may claim an income tax deduction on their account contributions and interest earned starting with their Idaho income tax return. Individuals may deduct up to $15,000 each year. Married couples filing a joint tax return can deduct up to $30,000 a year. Deposits into a first-time home buyer savings account shall not exceed one hundred thousand dollars $100,000 for the lifetime of the account.
Married individuals filing jointly are considered the account holder if they both reside in Idaho, if at least one (1) of them has filed an income tax return in Idaho for the most recent taxable year, and if at least one (1) of them is a first-time home buyer.
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 at Willamette Valley Bank. No withdrawals may be made from a first-time home buyer savings account within the first thirty (30) days from the establishment of the account. Thereafter, funds held in a first-time home buyer savings account may be withdrawn by the account holder at any time.The withdrawal of funds by the account holder for purposes other than the payment of eligible home costs shall be subject to taxes otherwise due. The account holder may not use account to pay expenses of administering the account, but the bank may deduct a service fee from the account.
Savings Account Details
- No monthly fee
- Limitations on pre-authorized withdrawals
- $100 minimum opening deposit
- 4.00% Annual Percentage Yield (variable rate and can change at any time)
Open First-time Home Buyer Savings
Interest earned available for First Time Home Buyer Savings Accounts. Annual Percentage Yield (APY) is current as of 5/1/2023. Interest is paid monthly. Account required minimum deposit of $100. For more information and detailed requirements, visit https://legislature.idaho.gov/wp-content/uploads/sessioninfo/2020/legislation/H0483.pdf. Borrowers should consult their own tax advisors to determine if they are eligible for tax deductions. Interest rate is variable.
When you choose to deposit your money in a local bank, you are helping to provide a tractor to a local farmer, an oven for the neighborhood bakery, and a home for the family next door. You have the power to decide where your money is reinvested simply by where you choose to bank.