HUD Articles

Michigan Realtors and Legislatures have been working on a program to help Michigan residence purchase homes in the state by introducing a tax deferred savings program, for a long time.

This new law just signed by Governor Whitmer creates a tax-free savings account for a first-time home purchase in Michigan. This tool will help retain talent and grow our workforce. It will encourage investment and economic growth in Michigan.

This tax incentivized savings vehicle enables individuals and families to save towards their first purchase of a home.

You can open one for yourself, or parents, grandparents, and guardians can designate the account for a qualified beneficiary, like a child.

Account holders could see up to 20 years of investment deductibility off their state income tax, allowing the interest on the designated account to grow tax-free, with annual investment thresholds up to $5,000 for a single tax return and $10,000 for a joint filing and with allowance of a maximum $50,000 lifetime investment.

Accounts can be opened at your neighborhood bank or credit union, or even through a financial advisor.

The definition of a first-time homebuyer allows individuals who have not owned or purchased a single-family residence in the previous three-year period to qualify for this opportunity.