Maryland & Virginia Homebuyer Savings Account Programs
Did you know that one in four first-time homebuyers say that saving for a down payment was the hardest part of the homebuying process?1 Luckily, thanks to the State of Maryland and the Commonwealth of Virginia, saving for a new home is easier than ever.
- The Maryland First-Time Homebuyer Savings Account Program allows any resident who plans to buy their first home within the next 15 years to create a tax-deductible savings account to pay for down payments, closing costs and other associated costs up to $5,000 a year for 10 years. Maryland defines a first-time homebuyer as a resident who has not owned or purchased, either individually or jointly, a home in the State in the last 7 years and who has contributed money to a first-time homebuyer savings account.
- The Virginia First-Time Homebuyer Savings Plan allows any Virginian to set aside up to $50,000 toward the costs of closing on a new home. The earnings on those funds — interest and capital gains — are free from Virginia state taxes. You may contribute $50,000 all at once, or you may contribute over time. There is no limit on how long the account may exist, and the account may grow in value up to $150,000. In order to be a qualified beneficiary in Virginia, one must not have owned or purchased a single-family residence anywhere, within Virginia, or elsewhere and is designated as the beneficiary of a first-time home buyer savings account.
If you are wondering how to participate in the Maryland First-Time Homebuyer Savings Account Program or the Virginia First-Time Homebuyer Savings Plan, an easy way to get started is by creating a new savings account. Whatever savings account you choose, please note that the funds in the account may be used for only one purpose — to buy a new home. Therefore, current savings accounts in your name that already have deposits do not qualify for either state program.
If you’re ready to start the homebuying process, visit our First-Time Homeowner information page, call 800.399.5919 or request an appointment with a mortgage professional.
Source:
1National Association of Realtors- https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers