Oregon's Supercharged Savings Plan for First-Time Homebuyers
Buying your first home in Oregon just got easier! Starting in 2025, the state is giving future homeowners a powerful boost with an expanded First-time Home Buyer Savings Account (FTHBSA) program. This means you can save on taxes while saving for your dream home. Here's the lowdown: What is it? The FTHBSA program allows you to stash away money for your first home and subtract those contributions from your Oregon state taxes. Think of it as a supercharged savings account that lowers your tax bill! How much can I save? For 2025, you can subtract up to $6,125 in contributions or earnings if you're filing individually. Filing jointly? That number jumps to $12,245! The best part? These limits will increase each year to keep pace with inflation. What's the catch? To be eligible, you must be an Oregon resident and haven't owned a home in the past three years. But here's a cool twist: even if you're not buying a home yourself, you can open an account to help someone else save for theirs! Where can I open an account? No need to hunt for specialized banks! You can open an FTHBSA at any financial institution in Oregon. What can I use the money for? The funds in your FTHBSA can be used for a variety of homebuying expenses, including: Down payment: That chunk of cash needed upfront. Closing costs: Those pesky fees associated with finalizing your mortgage. Realtor fees: Paying your real estate agent. Appraisal costs: The cost of getting your potential home professionally valued. Loan origination fees: Fees charged by your lender for processing your mortgage. Ready to start saving? Ready to start saving? Don't wait! Here's how to get started: Open an account: You can set up a first-time home buyer account at any financial institution you choose. It's easy! The financial institution does not need to know that the account is specifically for first-time home buying; you open it just like you would any other account. Designate your account: After you open the account, fill out Form OR-HOME to designate that account as your first-time home buyer account. This lets the state know you're participating in the program. Keep good records: Keep Form OR-HOME with your account statements and any tax forms related to the account that you receive from the financial institution. You'll need these when you file your taxes, and the state may ask for them later. This program is a fantastic opportunity to make your homeownership dreams a reality sooner while keeping more money in your pocket. Start saving today! SEE FULL PROGRAM DETAILS HERE
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