It’s no secret to most everyone in the Portland metro area that homes are quickly becoming less affordable for first time home buyers. Oregon lawmakers are trying to help first time homebuyers make it easier to save money to purchase their first home.
How would they do it?
The Oregon First-Time Homebuyers Savings Program (HB2996 and SB849) would allow individuals to take a state tax deduction for saving money towards a down payment on their first home. The savings would be stored in a special bank account. Deposits into the account would be tax deductible, up to a limit, and the interest gained on the account would be tax free.
If the plan is approved, the funds would need to be used for the down payment or other closing costs for a home. You could save up to $50,000 in the account over the span of 10 years to receive the tax credit, and you would need to be a first time homebuyer to qualify for the tax credit.
What this means for you as first time homebuyers?
If the bill passes, it makes it easier for first time home buyers to save up money towards their down payment, and make the jump from renting to buying. Saving money for a down payment is often the hardest part of buying a home. While many people think they need more than they do for a down payment, it’s still not an easy task.
Getting this tax credit and no tax interest goes a long way towards helping ease the burden of saving for a down payment. With home prices in Portland steadily rising, this would make it easier for you to jump in and become a homeowner.
There is no word yet on when the bills will be taken to a vote, you can visit oregonfirsthome.com for more information.