First Time Homebuyer Savings Account
Your home is one of the largest investments you’ll ever make. Now you can save for your down payment the smart way - with a First-Time Homebuyer Savings Account. Not only does it help you save, but you may be eligible for a tax deduction2 from a portion of your contribution to the savings account.
A First-Time Homebuyers1 Savings Account is a deposit account created for the purpose of saving for a down payment for a single-family, primary residence in the state of Iowa.
If you open an individual savings account, you may be eligible for a state tax deduction2 of $2,000. If you open a joint savings account and file your taxes jointly you may benefit from a $4,000 state tax deduction.2 Interest earned on the account is not taxable.
Contact your CSB Personal Banker to start saving today!
1Iowa Senate File 505 defines a first time homebuyer as an individual who is a resident of Iowa and who does not own, either individually or jointly, a single-family or multi-family residence for a period of three years prior to the date on which the individual is named as a designated beneficiary of a first-time homebuyer savings account and the date of the qualified home purchase for which the eligible home costs are paid or reimbursed from a first-time homebuyer savings account.
2You may be eligible for an annual tax deduction up to 10 times a maximum of 10 years. These tax deductions are state only and cannot be claimed on a federal tax return. Please consult your tax advisor, prior to opening a First-Time Homebuyers Savings Account, as we do not provide tax or legal advice.
The First-Time Homebuyers Savings Account must be open a minimum of 90 days before funds can be used toward a qualified home purchase. The funds should be used by January 1 of the 10th year, following the year they opened the account.