New First-time Home Buyers Savings Account: What You Need to Know

Tuesday, January 16, 2018


Iowa just passed a law that makes it even easier to save for your first home! Here’s everything you need to know. Get additional information by contacting your First Realty agent or visiting

What is it?

A 10-year tax deductible savings account to go toward the purchase of a first home in Iowa. Annual contributions have no limit, but state income tax deductions are capped at $4,000 for married joint filers and $2,000 for all other filers.

Who’s eligible?

The plan applies to first time buyers and those re-entering the market if they have not owned a home in the past three years. 

Who can contribute?

Buyers can open accounts for themselves, but it’s also a great option for parents and grandparents!

How do you get started?

You can open a First Time Home Buyer Savings Account at any bank, credit union, or other financial institution icensed in the state of Iowa.

What Else? 

Those hoping to buy soon: This is a great option to put you one step closer to your goal of owning your first home!

Parents and grandparents: This is a great way to help your loved ones. Rather than buying another toy or outfit, you can give a gift that will truly impact their future!