Resolved to Own a Home or Save for One in 2016? These Two Programs in Virginia Can Help
The First-Time Homebuyer Savings Plan
A law that took effect in Virginia about nineteen months ago makes it possible for aspiring home owners to invest up to $50,000 in financial institutions like credit unions and banks or directly in mutual funds, brokerage accounts, or almost any other financial vehicle and declare them first-time homebuyer savings plans. The gains or earnings on the investment are free of state taxes, and the funds can be used for down payments and closing costs on first home purchases in the Commonwealth. Additionally, the beneficiary of the account does not have to pay state taxes when receiving the funds, as long as the funds go towards the purchase of a first home.
To learn more about the first-time homebuyers savings plan, visit WeAreTheR.com/first-time-homebuyers/.
Down Payment Resource (DPR)
Approximately 88 percent of homes for sale in Central Virginia may be eligible for one or more down payment assistance programs. Eligible listings within the multiple listing database are now flagged with a Down Payment Resource icon and are available on subscribing Realtors’® reports. Agents can access up-to-date information about down payment assistance, grants, affordable first mortgages, tax credits, and more. They can also conduct a client search to find programs that are a fit for their client’s personal situation.
Saving money for a down payment has long been recognized as a major barrier to homeownership, especially for first-time buyers who lack equity from an existing home to help purchase a new one. Many homebuyers are unaware of the wide range of down payment programs that could make buying more affordable.
To find out if you qualify for a down payment assistance program, contact a local Realtor® and get set up with your own client portal to view local listings that may be eligible.